RE:My kind of dipsMarineJumper wrote: Albeit long and comfortable with this cash cow, everytime KL pulls back 6 to 8 dollars a share, I simply buy call options at or near the money 4 months out and like clockwork generate handsome returns in short order.
IMHO for an "Almost Guarenteed to Grow" stock like KL buying these type of call options are the best way to make Capital Gains on KL. I have been doing this since the big drop a year ago and have made more money that way than just holding my 15000 shares. The only problem is determining the best time to sell. You don`t want to sell too early but then you don`t want to sell after it drops 15% either. If you have accumulated losses and don`t mind losing your high gain shares because you can just buy them back, selling covered calls when KL is being slammed again brings in income and buying puts when you see this happening works too, since KL seems to be a "sell it down" and "re-buy at the bottom" favourite of the big money guys. KL has to be a traders` favourite. All IMHO of course based on my observations over the last 18 months. GLTA