Yesterday I BTC 3 AUY Apr08 15 Puts and STO 3 AUY Jul08 15 Puts for a net deposit of $264.51 in an IRA.

My basis on this AUY lot would now be 12.48 if put to me.  I am much more comfortable owning AUY at this price and would then be able to sell covered calls as low as low as 12.50 and still be profitable.  I would of course be happier selling covered calls for at the 15.00 strike price.

With gold trending down (down a whopping 33.70 today and below 900) the 12.50 price sounds much more palatable and likely.  Of course, I may find that gold will continue to fall in leaps and bounds making the 10 or even 7.50 price appear likely.  AUY was down below 10 just last August.