Thursday, May 11, 2006


Will the world approach that depicted by the 1995 movie, Waterworld? Just in case, I bought some deeper-in-the-money call options on the PowerShares Water Resources ETF (PHO). This ETF tracks the Pallisades Water Index.

Picked up September $16 calls for $2.95. The plan is to hold them until near expiration, and roll it into new calls then. If they expire worthless, then at most I'm out about 3 a share.

Hopefully, PHO won't fare as poorly as the movie.

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