Not sure why it is down today but Silver is $14 and it costs them less than $3 an ounce to produce it. Their earnings are going to explode. You can sell a 7 1/2 Leap against it and really rack in the money while limiting your downside.
Why wouldn't you just buy the stock? Jan '09 7.5 puts (synthetic or outright) only have .30 of time value. If the stock is a steal, why cap your earnings to 7.5? Earnings cap aside, why limit your return if the stock will hit 7.5 in the next 2 *years*? Being short a put means a rally to 7.5 tomorrow will only make you $1.40 instead of $2.50. All that penalty for a whopping .30 of time value? If CDE didn't participate in the massive silver rally so far, why would it now? Publicly hyping a stock (twice no less!) requires some evidence or else you're no better than the 50 spam emails I get a day. I actually like CDE, but I'm not a buyer until I understand why it's limping upwards when silver is skyrocketing.
My evidence is that their cost of production has fallen dramatically while the price of Silver has exploded. I think many mutual funds etc stay away from stocks at this price level. That is the real problem. Only time will tell. I am not spamming, just sharing something I felt I discovered here.
You can buy the stock at $5.20 right now and sell the Jan 08 7.50 Leap for atleast .50. Basically in one year's time, you could make $2.80 on $5.20, or over 50%. If the stock rallies, you can even roll your LEAP. While you are at it, why not buy the stock, sell the LEAP and sell some $5 puts.
Talking your position, huh? Just sold out half of my HL at 7.50, thanks. Noted insider selling above 7. Maybe moves higher, but hasn't been convincing.