why I just loaded June calls on the silver train
- Thread starter mksummny
- Start date
Can you ever imagine if the s&p 500 had a chart like this, it would be a matter of national emergency. When commodities or metals get killed like this, outside of the trading and spec community, it's as if it never happened.
But if/when a basket of stocks drops a few percent, you'd think the world was ending from all the rhetoric and fear mongering that a slide in stocks supposedly causes.
But if/when a basket of stocks drops a few percent, you'd think the world was ending from all the rhetoric and fear mongering that a slide in stocks supposedly causes.
I like those stories. Really, a guy could trade a handful of times a year putting on those outlier puts and take the small hits simply due to the fact that the one home run more than makes up for all of the smaller losses.
Of course, you have to find the right market for it, which is an art form in and of itself.
Instead, most guys become addicted to the constant stream of small insignificant gains and employ the reverse strategy.
He bought at .10. It was well publicized
LV Jul 2011 25.000 put (OPR: SLV110716P00025000 )
Last Trade: 0.72
Trade Time: 3:42PM EDT
Change: 0.47 (188.00%)
Prev Close: 0.25
Open: 0.33
Bid: 0.70
Ask: 0.72
Day's Range: 0.33 - 0.72
Contract Range: N/A - N/A
Volume: 15,448
Open Interest: 120,135
Strike: 25.00
Expire Date: 15-Jul-11
LV Jul 2011 25.000 put (OPR: SLV110716P00025000 )
Last Trade: 0.72
Trade Time: 3:42PM EDT
Change: 0.47 (188.00%)
Prev Close: 0.25
Open: 0.33
Bid: 0.70
Ask: 0.72
Day's Range: 0.33 - 0.72
Contract Range: N/A - N/A
Volume: 15,448
Open Interest: 120,135
Strike: 25.00
Expire Date: 15-Jul-11
I don't have a position in silver. But I will say, I'm not convinced the liquidation in commodities is over.
The *huge* sell off in crude (as well as a number of other instruments) today almost always means there will be a wave of margin calls. You can't tell me that every investor who was long crude yesterday had a chance to sell on the way down, today... especially when you consider Asia even hasn't had a chance to digest the move today. (And Europe missed out on much of the greatest decline.)
I think there may very well be another wave of selling tomorrow in many commodities, on the back of margin calls + additional liquidation, forced by today's action. I don't think there will be many margin calls left in silver at this point, but I do think they'll be liquidated along with everything else as people are forced into cash.
The *huge* sell off in crude (as well as a number of other instruments) today almost always means there will be a wave of margin calls. You can't tell me that every investor who was long crude yesterday had a chance to sell on the way down, today... especially when you consider Asia even hasn't had a chance to digest the move today. (And Europe missed out on much of the greatest decline.)
I think there may very well be another wave of selling tomorrow in many commodities, on the back of margin calls + additional liquidation, forced by today's action. I don't think there will be many margin calls left in silver at this point, but I do think they'll be liquidated along with everything else as people are forced into cash.
I agree. The only thing I can compare this to in recent memory was crude oil back in 2008. Just the sharpness of the move and the percentage declines. Where I also see similarities is that almost everybody is buying on the way down. Whereas on the way up I just saw skepticism, kind of par for the course with the perversity of markets.
On the other hand, (and this is the part that gets tricky), physical demand for silver is still large (I think mainly because to take delivery is not that onerous and can be done in small retail sized increments). Whereas with crude it's not a small time operation to get your hands dirty with that commodity.
