AUY - YAMANA June 2008 $15 callsI hope we have some more sophisticated investors than bashers and pumpers on this board.
This option chain is where its going to happen. If you don't think AUY will be at 15 or at least closer to 15 than here by June20, you are crazy... Therefore, I suggest you buy up the 40 cent calls (way cheaper than comparable calls on AUY). Assuming a 55% volatility rate which is historically accurate, I arrive at an option value of 80 cents if SP reaches 15.50 by June 20. That is a DOUBLE from here... Who here does not think we will hit 15 by june 20? they are severely discounted here. 15.50 may be bold, but that is for a DOUBLE. 14 and change before June 1 would most likely provide a 50% return.
I am not saying excercising the options, I am saying trade the option itself in this type of environment where we are bouncing off a bottom and about to release earnings which will beat the downward guidance set forth by the company earlier last month.
Do I have to remind everyone that gold was trading above 900 bucks for basically the whole quarter.
You just watch... I appreciate thoughts...
My 2 cents. SuLtAn