Ian and Lurker: I agree with Ian's assessment.

Options are all about future expectations, and either protecting or taking advantage of those expectations should they come to fruition.

Lurker: the problem with your argument is that from where you stand right now, KRY looks like a bad options trade. But no one knows what will really happen if/when the JV and permit happen. PPS and future expectations of that PPS, which would then be tied closer to gold, could be far different than they are now.

Enjoying the discussion!