October 21, 2007
Dear SEC Commissioners,
I am writing to comment on File Number SR-Amex-2007-97.
Call and put options are quoted for these ETF funds (PowerShares DB Precious Metals Fund, the PowerShares DB Gold Fund, and the PowerShares DB Silver Fund). Modifying the investment objective of the funds to twice the daily performance of their respective Underlying Indices will increase considerably the volatility of these ETFs and will thus considerably increase the implied volatility of the corresponding call and put options.
The investors who bought or sold these options intended to get exposure to the corresponding Underlying Indices as initially stated in the investment objective of the funds. Furthermore, it should be noted that it is highly difficult to offset those option positions as the corresponding markets are very illiquid with broad bid/ask spreads.
The investors who shorted the corresponding options should not be penalized by this increase in volatility based on an arbitrary change in investment objective.
As such, I urge you not to allow the proposed change before the currently listed options expire (i.e. not before April 18, 2008)
Marie Juliette MULLER