The entire sector is washed out and most of this weeks destruction was due to swindlers not wanting to pay up on calls. If you look at KGC and GG you will see what is killing their prices. Calls at 47 and 50 for GG and at 15 and 16 for KGC. Both stocks have gone down on above average volume the last couple of days. There will be a good short covering rally on Monday if nothing happens over the weekend on the Greece front. I think the game players are counting on chickens not to want to be long over the weekend but I am going to buy up KGC and GG for a short term bounce tomorrow AM.
I have been accumulating KGC below 16 and also below 15 for the last two months and I am nowhere with that strategy so far. The stock is mired in quicksand but it's very profitable so it's being held down. That however cannot last, you can't keep a beachball underwater for too long. The people playing these games are doing it short term and making money off people who don't have the nuts to stick with their convictions. I feel no sorrow for people who start whining when the stock they bought went down, they sure chortle when it goes up, why should they whine if it goes down?
Anyway, I am not happy with the current miner performance and certainly didn't expect it but I have to think it's not sustainable.
That makes sense to me. but tomorrow. when is the end of options was it today at close? Is the options finally complete.
tomorro is Quadruple Witching,
according to bloomberg calander
What about the FOMC potential continued slam down for next week?
Options actually expire on Saturday and any that are exercised then will be priced at Friday's close I believe. However, on Friday you can exercise any time during the day at the price the stock is currently trading for I believe. That is why there will be a lot of pressure to keep the price of GG below $47 tomorrow and KGC below $15. That is also why there can be wide price swings in the stocks on OEX days.
When you exercise your option on a stock, you exercise at the price of the option.......so a call on GG at 47, you will get the stock at 47..........if the stock price is below 47, you would not want to exercise that option. If the stock was above 47, say at 47.35 mid-day on Friday, you could either exercise the call and get the stock at 47 plus commissions, or you could sell the call (close your position) for around $35 a contract, less comm.
You are correct that the stock price is being jerked around near expiration day so the market makers in the options can screw as many option holders as possible.......and it is much easier on the mining issues which are so vulnerable to hedge fund tactics......options have become the tail that wags the dog, and it just gets worse around opex time.
On a happier note, the CME cut margin requirements for gold futures by 10% effective after the markets close on Monday.
Yeah, you are right, I was thinking about exercising and selling, my mistake. What I meant to say was that you can exercise it anytime on Friday and then sell the stocks you bought for a profit that day. Sometimes my brain just doesn't work right when I am trying to write what I think. If I were doing what I was thinking it would probably come out right. Thanks for making it clear, what I wrote was wrong and confusing.
These are not for-profit sellers. Yes they are insiders and they are making money from their manipulations but the main reason for their manipulation is to keep the sentiment subdued. The stocks that you've mentioned (GG and especially KGC) have been dogs for many years.(KGC was trading at $15 per share where it is today in 2007 when gold was still below $1,000 per oz. How many option-expirations since then?).All paper products (including stocks) are easily manipulatable in a world of infinite money.
GG has not been a dog for many years but I agree that KGC has been pretty disappointing. Doesn't mean it will continue to be. Now with GG, I have made 5x on my original investment and almost as much trading in and out of it since 2002. It pays a dividend and it has done will price wise. It was a great buy in 2009 below $20 and of course anyone who bought that dip did great, assuming they had cash to buy that dip.
As to OEX and manipulation, OEX is a huge part of the manipulation. Options are the tail that wag the dog in the stock market, it's part of playing stocks. Maybe you are one of these hard money people and don't like stocks, fine but there are digits to be made there and I am interested in digits because I can spend them. I have hard money too but digits still pay the bills and buy things I need and like.
Looks like the bounce may be underway, this is a nice move in the HUI today, 3%+. Many miners are up over 5% and some as much as 10%. AEM and USG have done great today.