Thanks I already have some spreads on SLV, I have been doing well with it selling calls out of the money against my calls. Do you follow any miners or royalties?
I've had my eye on SLV options and bought July, 15 strike calls at .50 last week. Obviously not far out long term, but in spite of the banking cartel doing its best to suppress gold and silver, I suspect the odds are good silver will go up strongly over the next month. The bullion banks totally crushed the rally today, which is infuriating. They have set up an impassable wall at $15.50 and any inkling of a rally is smushed before even the tiniest of toeholds can be established.
So far so good regarding the position as it is up 56% in only a week as I type this. We'll see as its not worth a thing until its closed and profits are locked down.
Good luck to all!
Its interesting that over the week, silver has been leading gold for a change.
I think another unknown here is the disconnect between physical prices and paper prices. If COMEX has lost control, technicals are out the window. Supply will be limited for awhile, as some mines shut down due to the virus situation. Will demand continue? This will be interesting the next month or so. Physical could go (much) higher near term, with paper (SLV,GLD) following and no longer leading.
Its good your first trade is recomended by Gregory. His alert last week gave me the confidence to pull the trigger on a very agressive trade, which I rarely do unless I see a singular opportunity.
FYI, please forgive some additional advice:
This is silver, which is tough for new traders.
It is VERY volitile, expecially because it is highly manipulated by the bullion banks. They will do all in their power to scare the crap out of you and shake you out. DO NOT overleverage and make yourself vulnerable to margin calls. (Better yet, don't use margin at all!) Silver can plummet horribly and far more than you would think possible, then snap back, so you need patience and staying power.
Good luck and like Gregory says, its never wrong to take profits. Better to bail too early with more currency than round trip up and down as you torture yourself for losing a profit.
I'm from Brazil so I'll definitely take it easy because USD to BRL is skyrocketing like crazy. Those hints are very much appreciated my friend Gary, thank you a lot! I'll most certainly never sell an option, just naked buys.
Gary gives good advice. Just a quick tip for ya. When looking at the chain of options you can look up or down to anticpate the price of the options for a one dollar move in stock. ex if you have the 15 strike , then expect it to trade for what the 14 is selling for if SLV moves up $1. if SLV goes down $1 your 15 will be priced similar to 16 currently. That way you can help yourself determine a good realistic exit price.
Sal thank you a lot for your tips! These were very helpful. One question I still have on trading options is, if I determine an exit price for gain, should I also set an exit price for loss (stop loss)? And then for that using a ratio to gain - for instance, a 2:1 ratio would be 20% for the stop gain and 10% stop loss.
This can happen again easily. This time many entities can do it. Way too many billionaires today and the big daddy of all CHINA. Imagine how much money we will have if that happen. Don't forget to send a thank you note to the FED. How hard it would have been without the FED to make money. But with FED printing, direction is crystal clear.
Just OTM usually means; next increment higher for calls or lower for puts.
Thank you my friend.
Physical Silver is ALWAYS a buy!!! Good day Greg!
Thanks Greg, I have maintained and added to my position since your first buy alert. So, excellent recommendation! Looks like good upside from here.
Thanks I already have some spreads on SLV, I have been doing well with it selling calls out of the money against my calls. Do you follow any miners or royalties?
I've had my eye on SLV options and bought July, 15 strike calls at .50 last week. Obviously not far out long term, but in spite of the banking cartel doing its best to suppress gold and silver, I suspect the odds are good silver will go up strongly over the next month. The bullion banks totally crushed the rally today, which is infuriating. They have set up an impassable wall at $15.50 and any inkling of a rally is smushed before even the tiniest of toeholds can be established.
So far so good regarding the position as it is up 56% in only a week as I type this. We'll see as its not worth a thing until its closed and profits are locked down.
Good luck to all!
Its interesting that over the week, silver has been leading gold for a change.
I think another unknown here is the disconnect between physical prices and paper prices. If COMEX has lost control, technicals are out the window. Supply will be limited for awhile, as some mines shut down due to the virus situation. Will demand continue? This will be interesting the next month or so. Physical could go (much) higher near term, with paper (SLV,GLD) following and no longer leading.
Everything is chaos with so many unknowns.
One thing I am positive of though is that silver and gold will go up.
For me that is one of the few "knowns."
I bought the January 2021 15 calls; those seem to be just OTM with the SLV trading at around $14.40
When Greg says 'just OTM strike', how much OTM is it? Like 10% (strike around $16) or maybe 15% (strike around $16.5)?
IMO, $16 seems a bit far out of the money.
So I believe somewhere between 1% to 8% OTM should be good to go. Thank you my friend, this will be my first trade.
Hi Victor,
Its good your first trade is recomended by Gregory. His alert last week gave me the confidence to pull the trigger on a very agressive trade, which I rarely do unless I see a singular opportunity.
FYI, please forgive some additional advice:
This is silver, which is tough for new traders.
It is VERY volitile, expecially because it is highly manipulated by the bullion banks. They will do all in their power to scare the crap out of you and shake you out. DO NOT overleverage and make yourself vulnerable to margin calls. (Better yet, don't use margin at all!) Silver can plummet horribly and far more than you would think possible, then snap back, so you need patience and staying power.
Good luck and like Gregory says, its never wrong to take profits. Better to bail too early with more currency than round trip up and down as you torture yourself for losing a profit.
I'm from Brazil so I'll definitely take it easy because USD to BRL is skyrocketing like crazy. Those hints are very much appreciated my friend Gary, thank you a lot! I'll most certainly never sell an option, just naked buys.
Gary gives good advice. Just a quick tip for ya. When looking at the chain of options you can look up or down to anticpate the price of the options for a one dollar move in stock. ex if you have the 15 strike , then expect it to trade for what the 14 is selling for if SLV moves up $1. if SLV goes down $1 your 15 will be priced similar to 16 currently. That way you can help yourself determine a good realistic exit price.
Sal thank you a lot for your tips! These were very helpful. One question I still have on trading options is, if I determine an exit price for gain, should I also set an exit price for loss (stop loss)? And then for that using a ratio to gain - for instance, a 2:1 ratio would be 20% for the stop gain and 10% stop loss.
https://www.investopedia.com/articles/optioninvestor/09/silver-thursday-hunt-brothers.asp
This can happen again easily. This time many entities can do it. Way too many billionaires today and the big daddy of all CHINA. Imagine how much money we will have if that happen. Don't forget to send a thank you note to the FED. How hard it would have been without the FED to make money. But with FED printing, direction is crystal clear.
Good Morning Greg! Yes, SI needs to catch up with GG/SI ratio Thank you!