Monday, May 23, 2011

GLD calls purchased $170 July 16

I'm hedging just about anything I can find now. Gold looks ready for liftoff. Fuck silver (for now just keep buying the PHYZZ at these 90% off levels)


  1. If $US chugs higher than today's 76.54 there is downtrend line resistance just under $77 and price resistance a tad over $77.50 imo.

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  3. $170?...That's a spicy meatball!

  4. I agree, GLD is currently at 147 and change and Gold is at 1516. That's a ratio of 10.31, which would require Gold going to 1753. But to exercise that option you wouldn't need to be in the money. Just the delta would create the profit, I think?

    SGS, comments please?

  5. if silver is rarer than gold above ground now, why do all banks keep buying gold and refuse to recognize silver ... kinda funny how silver is hyped and denigrated so much and yet it's what is attacked by wall st manipulators ... how many of you would trade 43/1 if you had chance right now? just curious ... and who thinks silver will be 10/1 to 16/1 to gold like many "experts" contend within next couple years?

  6. I am confused, why would you buy a short on the market to "hedge" and then long PMs to "hedge" again. Your betting the dollar will rise with one position and then betting it will fall with the other. So overall where are you "more" long?

  7. @dan... gold appears to the be the Ultimate hedge right now! no matter what is going on it is stable.

  8. Colin,
    I have about 1000 oz Ag, I will not be trading anytime soon. My trade/sell point is below 20/1. And my Au sell point is Au=Dow!

    Those are just my rules, each to his own!

  9. Dan,
    If everything is the World goes to shit, gold goes up!

    If QE3 doesn't start the market goes to shit, gold goes up!

    So you hedge the market is going down by buying PUTs in over valued stocks, ect.. and by buying Calls in say in gold, or inverse funds.

  10. I just couldn't resist a small short of WTW. What a pig.

  11. Dan: I have also many crossing fishing lines with different baits out right now.

    Some will give me some fresh and nice cod, but that would also totally rip my sardell-net apart when the cod tries to come off the hook. Etc.

    Long Sugar (+nuclear fallout, +nice price)
    Long Wheat (+nuclear fallout, +coming drought)
    Long Corn (-nuclear fallout, +coming shortage)
    Long Oil (1.5 share, means Im fishing for very big, dangerous and flying 'Warthogs', sad :( )

    Short Oil (1 share for protection)
    Short Nikkei (This is the most sad option, but it is a no brainer considering the shh-shh going around the power plant)
    Short DAX (lol...)

    I was shorting SP500 and BRIC but sold when they proved to be fairly strong today.

    Im considering to move into a little gold now as well. It should not drop like a stone if things keep on crackin'

    Also, this is getting really serious:

    Massive pressure building up on Indonesia, would be devastating to have the big one out in the middle of the ocean creating a world wide tsunami. Also, Indonesia is so unprotected :(

  12. Dan,

    Nothing is logical anymore is it. LOL. Malcom gets what Im doing. If the overall market has a liquidation, ACME is going to get smoked. GLD will get smoked too, but not as much. THus the spread is what I take.

    Remember I look at charts and see quick movements as opportunities to take quick hits and cash off the market. Dont think b/c I buy a JULY contract that it means I think it will happen by July. It may happen by tonight.

    I trade one daily candle at a time looking for opportunities for narrowed premiums that previous day before the swell hits.

    If this turns out to be a longer term trade, that usually means I was wrong, and I will wait longer for market confirmation to exit without getting hurt.

    I could be dead wrong on both trades, but that the risk I take for buying insurance on my PHYZZ at this time.

    Hope this helps.

  13. Extra extra. Comex silver trades more than 1.2 billion ounces (doulbe annual world mining production on both Thursday and Friday.
    Gotta churn it faster and faster to keep it going down.
    Thats some amok-running Algos...

  14. "I trade premiums not the underlying. .30 may turn into $2. That a lot of fiat to then turn into PHYZZ."

    SGS - if you are playing just to turn a premium higher, why so far out? I'm guessing you can double your delta by going closer to the money, but I'm sure you know more than I...

    fools: another good hedge is 80 puts on IWM (Russell 2000 ETF). classic head and shoulders pattern developing, plus some great MACD divergence against the price action. not to mention the shit hitting the fan over in Europe and elsewhere. very bearish indeed.

  15. WTS: GLD play is longer term into the summer and I suspect a violent upward movement which would turn my pennies into several dollars very quickly.

    I can buy a wack load more and .30 than I can at $3...heres to hoping that by the time its over the spread is larger than if I would have taken the better delta near the money.

    I do things a little backwards if you havent noticed. Does it almost make sense and work out? No. But when it does its a grand slam.

    As far as IWM, that too has no breached the MA. Good heavens, we are in for a great week ahead.

  16. WTS,


    Are you talking Jun Puts?

  17. Strannick: What the hell are you talking about, one-point-two-BILLION-ounces?
    Thats almost 40 Mton!

    Damn, I need to get my pills... but I will wait until the seismic pressure nivellates, it has more than passed twice the mean value,
    and New York just had a tiny 2M-quake, cute!
    As always, I think this is it..but hopefully Im wrong for the sake of the Indonesians.

    Strannick, nice avatar btw, Im starting to admire Jackson more and more these days, after all, he is the only president to fuck with TPTB and survive while doing it!
    Lincoln and JFK was cool cats too.
    (J. Garfield should get more attention as well.)

  18. I was led to believe that GLD doesn't do shit over the summer...

  19. I was led to believe that GLD doesn't do shit over the summer... "

    Precisely why you should buy. LOL.

  20. It is a convention that PM are relatively stable and boring over the summer but with the timing of the end of QE2 I think we are going to break that rule this summer.

  21. Ok, I will be buying som' gold warrants tomorrow, big time! Thanks for the hint!

    How much will the small silver miners fall tomorrow? Maybe a buying opportunity? Or should I have ice in my tummy? (Swedish saying)

    9h without Earthly Ejaculation now... :S

  22. PMs boring over the summer + the world's falling apart = everyone may try to front run the fall price run up.

  23. WARNING!
    Level 4 California Area:
    Sudden small swarm occured after immense pacific build up. May be an indicator of a imminent 6.0M or larger quake (increases as time goes by without release of >4.0M energy in the Pacific region.