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CHK is Chesapeake Energy. If I am not mistaken, they are an Okalahoma natural gas producer. Some of my relatives work for them.

 

6100 North Western Avenue

Oklahoma City, OK 73118

(405) 848-8000

 

Chesapeake Energy Corporation is engaged in the exploration and production of oil and natural gas. For the 9 months ended 9/30/02, revenues fell 39% to $482.3M. Net income applic. to Common and before extra. item fell 97% to $6.5M. Revenues reflect lower prices for oil, gas and gas equivalents and $87M in risk managment losses vs. $94.7M in income. Net loss also reflects an increase in production, G&A, depletion, amortization, depreciation & interest costs.

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Several people asked about leveraged instruments to play gold. I have no experience with those myself, but the following things come to mind:

  • Stocks of unhedged gold miners (well, they are leveraged to the price of the metal)
  • Options on stocks of gold miners
  • Warrants of stocks of gold miners (somewhat similar to long-term options)
  • COMEX gold futures
  • Options on gold futures

Regards,

Vesselin

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I purchase options on gold and silver futures as a proxy for the futures without the potential drawdown. That way my purchase price is less than the intial margin and there is no maintenance margin. The disadvantage of this strategy is that these options are thinly traded and in the long dated (my closest position is Dec 03 (3Z)) contract) are not always quoted in real time.

 

Any futures broker can place your option order. Remeber the pricing is different than equity option pricing. One gold option = price * 100 ounces. So a quote of $18 = $1800 for one option. One silver option = price * 5000 ounces. So a quote of $0.40 = $2000 for one option.

 

Keep in mind that you are buying an option on a futures contract so that option expires before the futures contract.

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