Options

[magpie]

AU maximizer contract premium now at 15.00 for july. For those of you that have market savy in options, would this be a reasonable premium for the length of time ? This is at the money, have no experience in options.

[TOM4CWB]

Magpie;

100 contracts of July 06 260 puts traded at $13/t and can be flipped to a synthetic call by simply going long against them.

Is 15/t a fair premium? Good question!

Where do you expect prices to go, 268 plus 15 is 283, do you expect a higher price than this by June 15th 2006?

I understood there was some of these at half price for May last week, something like $7.50/t.

[JACKFLASH]

Magpie:
Those producers that outright shorted the July to capture the carry in the market, did well. I don't know if there is enough $$$ left to do it as the difference is narrowing.

[TOM4CWB]

Jackflash;

For those who were not greedy;

The Nov 06 was a dead ringer for a profitable hedge!