I'm at Java John's, today. I'm waiting for Nate to finish his laundry and return for his Ipod, which he left here.
I've been watching gold all day. Last night it went up in Asia and Europe. It opened higher in New York as well. I wish that I sold in the first 30 minutes of trading. Newmont has been going down since then. I'm going to try to sell, again, tomorrow. It's tempting to hold until Friday, which is options expiration day. It will be very volatile, then.
That leads me to the topic of trading options. You are probably better off not doing it. The time factor works against you too much. Gold went through the roof, today, but I still didn't make any money. I made 2 mistakes when I got into the option contracts on Newmont Mining. The first was to buy a miner instead of the actual metal which I thought would go up. I could have bought an option on the GLD ETF. That's an ETF which tracks the price of gold by actually holding gold.
My second mistake was in buying options that are so close to expiration. They were priced considerably over the underlying value. That means that I paid a high premium for the options. The closer to expiration that they come the lower the premium becomes. That's why even though gold went up over $10 an ounce today, my option stayed at the same price. I had about 15 minutes when I could have sold at a decent price. The rest of the day it just slowly went down.
Well I'll have to leave, now. I've got to check Ebay and see if I bought a laptop. I might do that at home. I'm busy talking with Nate and Brian so my attention is getting divided.