I have put my short term bets on for next week, straight up gambling the May 13th $38 strike on SLV at .68 cents, thus far I'm getting tuned (buy could wake to monday at 100% profit IMT who knows). I also bought a SMALL amount of phyzz today. You should have to just in case. I like this $35 here. My dealer says the phones are full retard today, full out panic to BUY phyzz.
I'm assuming something fucktastik is about to hit the Euro zone this weekend, as the PM's should have got shit kicked again today on the crude selloff. Huge Victory thus far (3 pm).
Also note the Oct 22 strike is all green on the calls premiums increasing today....hummmmmmm yummmyyy...not shown, for a buck, you can hit the $48...and have till October to get there....yummmyyyyyy Next week I hit the October's!
Thank me lots!
It's been an interesting ride. My phyz stays where it is, got out of PSLV, into ZSL and tonight back into PSLV, meaning I was able to double my paper position... my bet is that the Monday margin hike is right now calculated into the silver price of today as anybody holding positions that would be too expensive on Monday had to kill them off today, right? What do you guys think? With no further margin hikes announced (other than the Monday one that is calculated in), silver should no longer drop and even start going up again. Hoovering @ $USD 35 and ready to go up?
ReplyDeleteIs this the beginning of the end for the Euro? Then 2-3 weeks later, the dollar? http://www.youtube.com/watch?v=j2WTz2pqVlM
ReplyDeleteLOL, thats assuming they dont raise margin on Tuesday! Dont count that shit out!
ReplyDeletei covered short today for a decent profit. for some reason i jsut dont want to be short over the weekend. then again i dont want to be long either... but that didnt stop me from buying some small spec jun 18 calls. yes it is basically gambling now. not feeling very comfortable about it. may have to reeval this depending on how we open next week. might have to ramp up on my defensive positioning if its looking weak. i camt see how we go down too much further without some pop back near 40. at that point im buying july puts because i think shits going to spill over amd get ugly everywhere within weeks
ReplyDelete"at that point im buying july puts because i think shits going to spill over amd get ugly everywhere within weeks"
ReplyDeleteJune/July biggest delivery months for Comex, dont they'll make it this time
sgs so im new to the whole stock thing and been following your blog for awhile now. i only have about 1k$ in my scottrade account to play with. looking to build it up and gain knowledge and experience. heading on to my account now what would you suggest for starting out with little $$$$? Im about all in as i can get on phyzzz right now. thanks for your posts
ReplyDeleteId spend $1000 on Tinka Resources. TKRFF Good luck.
ReplyDeletecool thanks man
ReplyDelete"Shits going to spill over and get ugly everywhere within weeks"
ReplyDeleteAre you talking about Greece/Euro debt situation spilling over?
Im looking for silver to test newly discovered bottom early next week, then buy up some July 40's
Second Earls comment thanks in advance...pretty much all in phyz right now too, been reluctant try options...appreciate the continued advice
ReplyDeleteSGS: you have an email address where I can email you an interesting screenshot I made on binkbank trade platform about TK?
ReplyDeleteDr: WTF the fuck does that even mean? mrsilvergoldsilver@yahoo.com
ReplyDelete@ Dr
ReplyDeleteWhy not share it with everyone?
SGS, kindly share the name of your dealer - thanks!
ReplyDeleteJust got a MarketWatch bulletin...
ReplyDelete"Greece calls rumor that it is leaving euro zone 'completely untrue'"
Did my part and started dollar cost averaging in with APMEX. If it drops on monday I'll buy a little more. If it goes up I'll buy a little less. But I bought Phyz today.,...DID YOU?
ReplyDeleteV10Silver
fuking knew it....this was just a freaking another ploy to sock it to commodities and try to ignite a rally in USD.....these are slimy scum fukers were dealing with...throwing every freaking trick in the book
ReplyDeleteWell, I'm far from being a big dog, but got in the truck today, went straight to the only coin dealer here in town. Lady knew I was coming. But they're cool because they've seen me buying all the way up so she gets out what she has left. And it's fifteen eagles to choose from. 15. This is a shop in business forty years and they are out. So she got out the coffee can with junk silver and gave me a fair price on that and I grabbed a few handfuls. Now that I've eaten lunch I feel like I should go back.
ReplyDelete@S, I think it may be a little too early to celebrate. The conspirators (I think PTB is a little too passive -- makes you think they're a fact of life ... they're not!) have too many tricks up their sleeve.
ReplyDeleteWe need some tactical, precision strikes here.
They might try to do something Sunday.
It kinda sucks when they own the media, do you think they could release rumors to unsettle the nervous wrecks?
Another margin hike, though crazy, is indeed possible too.
So many things could happen. One thing won't change. I'm getting more phyzz®
I got tuned today trying to trade the wiggles again. One of these days I'll learn how to do that but I'm through giving back profits for this round. Or maybe I'll learn to just stick to what's working for me and stop trying to be a hero. Who knows.
ReplyDeleteSGS you are my hero for the size of your balls. Don't take that the wrong way, it's not like that.
SGS, just wondering, did that CUNT fuck you anally in the 2008 takedown on silver?
ReplyDeleteYou really hate them, just wondering what got you there.
AColin
i think jp morgan and friends will make a shitload of money from all the worthless expired call options written in march and april 2011...
ReplyDelete~SGS are you still high on Fire River? I got back into PSLV today, same as Wim. I am looking to get back into TK also. What are your buddies whispering about the miners--anything? Are they to continue to get pounded or do you believe the beating is over, for now, on the junior miners?
ReplyDeleteMonkeySmoke, what pounding?
ReplyDeleteConsider if we lived in some kind of sick and sweet parallell universe where there were a ongoing Honey-crisis ,
the f*cking apiculturists would commit ritual suicide and bee-stocks crash 51924% if the honey-price plummeted like "silver" did this week. (But silver don't squirts from bees you'know, silver squirts from Queen Blythe)
And as promised, I will give everyone a free round of big balls reduction when Tinka\Hinterland\Sotomako(Finnish) and Wildcat skyrockets.
http://www.youtube.com/watch?v=qzT7BqleVSc&feature=related
If ObamaNuke don't hit next week on 11\05 2011, i feel that the results of Tinkas test drillings 15-16 of may will be epic! :)
Over and out from Schweden!
miners will have their day- must have patience
ReplyDeleteGainsville Coins is selling 2011 Silver Eagles for 41.66 via bank wire.
ReplyDeleteTheir delivery date for May 27th has be pushed FORWARD to JUNE 17th! Just in time for the June CRIMEX gold default and the July CRIMEX silver default. Shit, I always thought that the AG would default first, maybe I'm just fucking wrong?
Jesus fucking christ, you'd think with the shellacking so many PM "investors" just took all the froth would be out of this market. So I am honestly baffled when I see newbies showing up asking how they too can screw themselves by trading options.
ReplyDeleteNot to be a dick, but if you've never traded options before be prepared to blow up your account at least once before figuring out how not to be a suicide investor. And for the love of shit, do not pick this time to get involved in the market. Silver just got monkey hammered and the markets are choppy as all hell. Think of it as walking through a minefield with no clothes and no helmet and take action accordingly, namely by standing the fuck still.
At the same time, if you insist on blowing yourself up with options, then do it with a small amount of real money. Paper trading is for pussies and more akin to masturbation than trading, but risking a ton of money at the outset is idiotic.
Any decent modern broker has options trading nowadays, etrade, tdameritrade, optionxexpress. Some are more expensive than others.
@goudzilver :
ReplyDelete+1
@flaunt:
ReplyDelete++1
chapman hour long on american freedom, this is one i said he sounded wounded on thursday ....
ReplyDeletehttp://www.americanfreedomradio.com/archive/Freedom-Files-32k-050511.mp3
Have you guys ever read this thing by this guy who went by "Another". It looks to be a compilation of short blogs and email replies back from 1997, something amazing. Check it.
ReplyDeletehttp://www.usagold.com/goldtrail/archives/another1.html
@flaunt: You couldn't be more wrong. Considering options aren't traded on margin, they are quite honestly one of the safer ways to trade the absurd volatility occurring now in silver.
ReplyDeleteThose who are still trading actual futures contracts on COMEX/GLOBEX are the ones who are flat out crazy.
Myron, I agree trading futures contracts is the easiest way to blow yourself up but options use leverage and are potentially much riskier than holding ETFs and stocks. You can somewhat limit your risk by only buying enough option contracts to equal the actual number of shares you would have bought outright. Still, when you buy options you have to be right about price and time, and it's hard enough to get price right. Someone who buys 1 contract against say SLV rather than buying 100 shares is only out the money paid for the contract if it goes against them, but if they had simply bought the 100 shares outright they could have held onto them if their timing was a little off and let the bull market fix the mistake.
ReplyDeleteI bought 500 Maple leafs yesterday. FUCK this silver train is going down and PAPER BE DAMNED. It's going to be a war of the the PHYSICAL nature because that is the NUCLEUS of the atom bomb that will explode all over the world more explosive than one point five quadrillion Fuckushimas (thanks Blythe for the Credit Default Swap of mass destruction)!
ReplyDeleteAnother, FOA, FOFOA... all good stuff.
ReplyDeletechapman today, he talks about the margin rigging at 7:15 into this link for a few mins...
ReplyDeletehttp://www.youtube.com/watch?v=ty_SgkmU61M
OC15,
ReplyDelete"Another" is a Jedi Master.
In fact he and his Friend inspired a Friend Of Friend Of Another to start a blog called: FOFOA
http://fofoa.blogspot.com/
If you get FOFOA then you will understand clearly all that is going on and buy as much silver as possible and trade a portion of it for gold eventually.
There was also a blog called FOFOFOA but got switched to: http://flowofvalue.blogspot.com/
I read a news story out of the UK a couple months ago where a clumsy home-"owner" was digging in his back yard and unearthed a score of AMERICAN gold coins dating back to..... NINETEEN THIRTEEN. Guess what happened in 1913?
"but options use leverage and are potentially much riskier than holding ETFs and stocks"
ReplyDeleteI'll step in here. You cant loose more than you put in with options. You bet $500 on a .30 cent premium and it goes to zero or expires, you loose $500. It goes your way and the premium now is $5 (like this past week on some puts I took) you make a fuckload, infact 400% overnight.
"You can somewhat limit your risk by only buying enough option contracts to equal the actual number of shares you would have bought outright"
WTF are you talking about? I have NEVER held the actualy underlying shares for options trading.
I think we are talking about trading premiums, thats it. Now if you want to go and straddle, and cover and write and blah blah blah, go ahead thats where you can get fuckin tuned.
I see ZERO risk in trading premiums other than losing what you have put in. And if you dont feel comfortable losing, buy some WAYYY in the money so if it goes against you, you can still salvage half your money back.
Now lets take $500 and SHORT SLV which only buys you a some dicks in a basket say all of 15 shares of SLV.
Im not going to do the math, but it doesnt matter if it goes to ZERO, you dont make shit.
"Someone who buys 1 contract against say SLV rather than buying 100 shares is only out the money paid for the contract if it goes against them, but if they had simply bought the 100 shares outright they could have held onto them if their timing was a little off and let the bull market fix the mistake. "
Right, you know how many people told me that when they bought Lehman at $9? They held. And lost everything.
What if you bought 100 shares of SLV at $49 and still hold it? thats $4900. and now you are getting spanked for $1500 instead of $500.
Options are a million times better and you dont have to risk anything but tiny bits a time, and when it hits, it hits HUGE and makes all those little loses go away.
Flyers off to golf tomorrow. Fuck sakes.
May 6th, Single 2011 Silver eagles no reserve auctions on eBay - only 3
ReplyDelete54.33
30.00 (somebody got a deal)
51.30
Average $45.21. Also, a roll of 20 sold for 888 or 44.10 per coin.
Price, for the moment, is certainly decoupled from spot.
http://completed.shop.ebay.com/i.html?_nkw=2011+Silver+eagle+-rare+-ANACS+-PCGS+-NGC+-First&_sacat=253&LH_Auction=1&_dmpt=Coins_US_Individual&LH_Complete=1&_odkw=2011+Silver+eagle+-rare&_osacat=253&_trksid=p3286.c0.m270.l1313
reefman,
ReplyDeleteI've been reading FOFOA for awhile. Guy is brilliant. He made Rick Ackerman look like a little girl getting dunked on by Bron. That's how I found Another. Why don't those guys ever talk about silver though, it's always about G-O-L-D...though FOFOA did allude to wanting to investigate the hubub about silver in one of his most recent blogs.
Appreciate the follow up SGS, great comments. I've been following you, Harvey and Turd, since last year and have about 50 ounces to show for it so far.
ReplyDeleteWhile I like physical, I like others it seems are looking to use some leverage to buy this dip. Can you give some more insight on utilizing options if you've only got a couple of thousand to play. Also to clarify, are you buying options on SLV or actual Futures contracts.
Thanks for all the info, great blog
@flaunt. I wish I had read your post last week. I'm a newbie experimenting with options and had an account blown up because I didn't fully understand them. I broke down in tears tonight when I told my wife I just lost 20% of our savings this week because I made a mistake.
ReplyDeleteEarlier in the week, I bought May $23 naked call options on ZSL, thinking I would end up getting the premium. I thought $23 was far enough out of the money to be safe. I sold at about .65 and as ZSL zoomed, my account started to get force liquidated. I ended up getting liquidated out of every position except the ZSL call. I didn't think I had to worry until AFTER ZSL went over $23.
I know, stupid newbie mistake. I got pushed to my limit today and bought SLV puts in case ZSL keeps rising. ZSL is just below $23 right now and I don't know if its best to hold the naked ZSL 23 calls and SLV puts, or to sell one or both. If there is an exprerienced options trader here, I am open to suggestions.
SGS,
ReplyDeleteI agree there are ways to manage your risk but people who have never done it before don't fully "get it" until they see what actually happens to their positions. I mean 80% up one day, 50% down the next. Someone looking to get started needs to ask themselves if they can really sit on a position that is down 50 fucking percent the very day they took the trade. If you can't your emotions will get the best of you and you'll rack up a string of losses that can quickly blow up your account.
I wasn't saying that someone should own the shares and the options. I was saying if someone has the money to buy 100 shares of PSLV they could buy the 100 shares outright and then sit on them. You might have a loss on paper for awhile but chances are you'll make up for it and then some. If you believe something is in a bull market then that shouldn't be a problem. It's no different than buying physical believing that eventually the stuff bought in the 40s will look cheap.
I'm not trying to talk anyone out of playing options I just want them to understand how incredibly violent they are and how you can decimate a trading account in a matter of days if you don't manage your risk or understand the market. It really fucks with your emotions so you learn really quick about your true risk tolerance. Yes it could go up 500% but it can also go to zero or near zero overnight. You really either have to have huge balls or just not give a fuck in order to resist selling at just the wrong time. My best trades in fact have come from buying and saying "oh well, fuck it if it goes to zero." Not everyone can do that though.
OC15 and reefman, thank you so much for the links. I feel like I just discovered the secret internet. Now, if only I could go back in time and give my past self this information.
ReplyDeleteWhoever "another" is, is/was a person who obviously knew some things that typical people would not know.
I'm a futures trader almost exclusively. There's nothing crazy about trading futures in the current climate. As a matter of fact it's pretty easy money right now. Just depends on the individual. And, you can limit your risk trading futures just like with anything else, plus the leverage allows you to potentially make a lot more with a relative little bit of capital.
ReplyDeleteFor example, say I have a 15k portfolio. If I can catch 2 .10 moves a day trading 5 CL contracts then I'm making 5k a week. Do you have any idea how easy it is to catch two .10 moves on CL a day? It's fucking easy.
You don't have to be crazy, you just have to be experienced, patient, observant, disciplined and humble. If you're missing any of those then I wouldn't say you're crazy... just broke!
:-P
Roger, sorry to hear you got screwed. Did you mean you wrote a naked call on ZSL rather than bought? The person who writes the call is on the hook for potentially unlimited losses, while the person who buys is only out the premium paid.
ReplyDeleteI honestly have never even had the thought enter my head to write a call and I certainly wouldn't do it naked.
You could have bought back the call at any time on the way down... Why didn't you do that rather than allowing your entire account to get crucified?
Rich, sorry to malign your chosen trading path. I shouldn't have said anything since I've never even tried it. How do you keep from taking a massive loss when they jack margins or a margin hike rumor comes out? Seems like you could easily wipe out a week's worth of gains before you could react to the sudden drop.
ReplyDeletebtw nice looking rig in your profile pic. how many of those screens are for watching porn? :)
ReplyDeleteNot at all feeling maligned flaunt... no worries. The answer to your question is simple... I'm never in a position overnight. Furthermore, I'm never in a position when I'm not at the screen watching it. For me, trading futures is akin to being a base hitter instead of a homerun hitter. The goal is to make $500 - $2000 a day. A grand a day is pretty easy and I usually quit after that. The goal is also to be in the market as little as possible, which futures allows you to do easily. It is not at all unusual for me to be up a grand before 9:30.
ReplyDeleteAs for your second question, the two lower center ones. :-P
@ Roger,
ReplyDeleteYour story doesn't match. If you really bought may $23 ZLS options somewhere before or near the beginning of this week, you would have profited.
second, you can't "buy naked calls", the term "naked" is usually in the meaning of a naked sellf of an option (i.e. you write a call option without the underlying)
As to your question:
since you are trading options (a leverage instrument) on ZSL (leveraged shares) and getting margin calls (you are leveraged with the bank's money), without the skills of doing so (you admit this, and it is very clear from your post), I truely advice you get out of all your options positions and at least read one decent book or online course on options.
if you can answer without hesitations the following questions, you're good to go:
what is the maximum loss of the trade?
when will I sell the options (and roll over) due to time decay?
why is it less risky to buy a put instead of naked writing a call?
If I want to profit from price movement to the upside, what are the (dis)advantages of OTM call options versus ATM call options?
This is NOT that hard, and does not require you go into the mathematical details of options pricing.
Even if you can answer these questions from your own research, I'd still recommend you only use money you can afford to lose (i.e. a few % of your portfolio).
(My personal advice: only do OTM options with a small percentage of your portfolio, to try and catch a BIG move. Think of your options as worth $0.00 immediately even though the bid-ask says otherwise. If the big move comes: payday! if it doesn't, roll over)
so.... to anyone ... what is the best way to learn more about trading? suggested reads? Im really tryin' to find a way to get out of my job so i can spend more time with my family. I have a decent Job but like you know it stands for just over broke. Only makin about 3k a week and to do that takes most/all my time. then with that i spend most my money on phyzz tryin to prepare for the endgame. Oh and just curious has anyone heard of stansberry's investment advisory? just watched the vid but not sure I'd learn much from joining his site. Thanks for all of your help guys.
ReplyDeleteEarl, as far as Stansberry, they are legit. What I have found is they offer many newsletters, so it is confusing what to subscribe to. Some of their subscriptions are near $2,000/year. Their basic newsletter is something like $50/year. Start with the basic newsletter and see if you like what you read/can use what they advise. Good luck.
ReplyDeleteEarl: do you want to trade or invest? HUGE difference.
ReplyDeleteHey Earl, if you are really making 3k a week then you should keep buying phyzz and every night you should thank GOD that you make so much money because you come across as a dumb fuck. You will be bankrupt in less than a month if you give up your job and start trading. Very smart people get fucked up the ass when they try to make coin trading. You will be fucked, probed and fisted before you are dumped on the shit-pile of wannabe get rich traders because I read a fucking investment blog and I think I know what the fuck is happening in the world. Go to whoever is paying you 3k a week and say thank you and insert his/her dick in your mouth and show some fucking appreciation that a sorry ass dumb fuck like you makes 150k a year!
ReplyDeleteUK Phyzz® Update
ReplyDeleteMy dealer is working Saturday to keep up with demand. They have never been busier apparently.
Keep in mind, in the UK, there is 20% VAT on AG.
Silver, let's get physical!
@flaunt and gaudsilver:
ReplyDeleteI may have used the terminology wrong, but I did make mistakes with ZSL options and had my account liquidated with interactive brokers.
Over the last few years, I have been buying gold/silver bullion and equities in a pyramid foundation. As price goes down, I keep buying a bit more. As price goes up, I sell a bit. Its worked well, so I decided to try buying options in a pyramid foundation. Due to the leverage and sharp pullback, I've had large losses. Normally, they wouldn't bother me so much because I know I own an asset, but its this time and premium factor with options that gives me stress.
Regarding the ZSL:
On May 3rd, I sold $22 and $23 OTM ZSL May options for in a range of 0.4 to 0.6. I did not own the underlying ZSL shares. I figured ZSL had very little chance of reaching $23 by May 20 expiration and I would get the premium with little risk. Also, I thought as long as the price of ZSL was below $23 on May expiration, I was OK. As the price of ZSL zoomed up, my the ZSL options I sold skyrocketed in price and since I did not own the underlying ZSL shares, that position value plummetted. Interactive brokers force liquidated all my other positions. I didn't fully understand what was going on and had other options on fire as well. I finally bought some slv puts to balance out the ZSL position. ZSL $23 options are now at 2.50 and my account still shows a huge red market value that IB seems to hold against me. If ZSL closes below $23 on May expiration, then I won't owe anyting on the the ZSL options I sold, right? I just don't want to buy the options I sold at a huge loss. On Friday, I panicked a bit and bought slv puts to balance out the ZSL. Right now, the account has negative three ZSL May $23 calls (bought at about 0.45, now worth 2.50). Also, one slv put (bought at 3.29, now worth 3.15). I just don't know if I should hold for expiration or just dump it all for a loss.
Overally, as the silver/gold price declined, I kept buying more and more options. A contract is only a few hundred bucks and it didn't seem like too much. I think I'm making matters worse now. For example, I bought $42 slv June call options last week that have lost almost all their value. Since, I didn't think slv could reach $42 by June, I sold all of those for a loss and bought an October $36 SLV option in the hope that SLV can rebound by then.
Overall, my trading account is 50% of my savings. I bought lots of options last week into the decline - gdx, gdxj, and slv. Most were near ATM at the time. They now range from July to December. These options make up about 16% of my trading account and 8% of my overall savings. I did buy these options into a substantial correction - about the only thing I did right. My hope at this point is a turn in the market, so I can sell these options at a small profit. I want to phase out of this options game and go back to just buy/sell the assets with no leverage. It just seems like a bad idea to sell them at this point since the gold/silver market has had so much weakness recently.
Thanks for you input. Its appreciated.
Earl,
ReplyDeleteDon't make the mistake that a lot of people do that you can just up and quit your current job and become a profitable trader in a month. Most profitable traders have put the time equivalent of at least 4 years of college into learning what is necessary to be successful. Trading may look simple, but it's not easy. Not without a lot of work and experience.
Speaking of experience, trading is one career where, no matter how much you read and think you know, you don't know shit until you put your skin in the game. Paper trading can be helpful from the technical perspective, but the most important component of trading isn't brought into the experience until you're trading live with your own capital.
Anyone can learn the technical aspects of trading. Do it any way that works best for you, be it through reading books and websites, taking classes, or the way I did it... buying a subscription to eSignal or another charting service and read everything on the "chart school" section of stockcharts.com and by talking/chatting with any trader who will talk with you. That's the easy part.
The part that separates the men from the big swinging dicks is the psychological aspect. The market will turn the toughest badass into a blubbering crybaby within a day. Every mental and emotional weakness you have will be revealed and toyed with by the markets. If you don't go into it with humility and an honest willingness to look inside yourself to observe and correct every attitude and thought you have that causes you to lose, you won't last a year.
In my opinion, trading is the most fun, rewarding and, eventually, easy way to earn good money, but make no mistake, you will most definitely earn that end result. Most people go through their own personal Hell on the way there first.
To get back to the question you actually asked, my advice is to first become as clear as possible about what kind of trader you are. There are many different ways to trade and vehicles to trade with. Find a style that fits your personality. For example, if you're a very, busy, active, mental, high strung type, then you might be more inclined towards futures scalping (scalping is getting in and out on small increment moves that usually last no more than a few minutes). If you're a brainiac then perhaps options. If you like to keep things slow and simple then you might enjoy swing trading stocks and simple options plays like SGS seems to be doing.
Hope you find this helpful.
Roger,
ReplyDeleteI can't comment on your options experience since I have so little experience of my own with them, but I feel for ya! I think I can help you in one little way in regards to Interactive Brokers...
Open the "account" window from within your TWS, put your mouse icon over one of the positions in your portfolio section and right click on it. A window should appear with several options in it. The one you should be aware of in this particular instance is the "Set Liquidate Last" option. This allows you to prioritize your positions so that, in the event of a margin call, IB will be a little more particular about what positions of yours they dump as long as your less favorite positions can cover the call.
Always some good info here...
ReplyDeletehttp://kingworldnews.com/kingworldnews/Broadcast/Broadcast.html
@SGS
ReplyDeleteI confess. I am a Bruins Fan. Bye bye flyers, this cup of redemption tastes delicious.
yumchoy: you're a dick
ReplyDelete@ledbed... is this still the play?
ReplyDeleteTo tell your broker: start looking at December calls at $50 to $65. See if you can afford. if you can, have them buy it on a "limit" order for that price. Hope that helps.
Roger,
ReplyDeleteSeems to me your biggest risk is those ZSL calls you sold -- They are already in the money so you run the risk of getting exercised at any point in time. Most likely that won't happen until expiration day if they are still in the money but it could happen sooner.
You should calculate your profit/loss scenarios and then try to decide what to do. For example, if you bought back your calls how much would you lose? If you bought ZSL at today's prices to cover your contracts what could you potentially lose? i.e. if the price of silver rebounds the contracts could expire worthless and you would be stuck with ZSL shares in the red. You need to define your risk because it sounds like right now your portfolio is hemorrhaging all over the place. No wonder it's causing you so much stress.
I can't tell you what to do but personally I would at least think about buying back the calls since the risk in holding the position is infinite.
As far as the other options go, if it wouldn't kill you to lose all the money you have in them, I would probably let them ride. Anything could happen going forward but one thing is for sure... There will be lots of volatility. The SLV put will give you a little protection on the downside, and if SLV falls from here you can let it ride and when you think it looks like a bottom you could sell that position and go long in another position.
Hope that helps a bit.
@ Ledbedder.... thanks man. well as for right now I am looking to learn more about trading stocks. I understand realestate and have a few rentals and would like to accumulate more but spending most money on peparing for the endgame for the time being. Getting ready to purchase another house here soon. but looking for something that i can do from home to make some more money so i don't have to work so much. I currently have a job that i can choose to work anytime i want day or night so my time is as wide open as i need to to be. thanks
ReplyDeleteAs for you yumchoy I really don't give a shit what you have to say because i have better shit to do than look up peoples comments on blogs to talk shit to them to make myself feel better. Hope it works for ya. Good luck with life dude. Just remember karma is a bitch and will hit you tenfold.
2pac4ya: yes
ReplyDelete2pac4ya: Just went to check quotes. December 50 calls are going for 1.291 ($6,455) and 65 calls are going for .38 ($1,900). There is a gap at 48.612. If you get in any of the options bewteen 50-65 and if it just closes the gap, that will a nice % return. As I have stated, I am a commodities/futures guy. I rarely look at stocks. I am sure someone in this community can give you advice on stock options if the options I told you about are to pricey for you.
ReplyDeletemoriarty is a foul mouthed horses ass, not to mention liar.
ReplyDeletehe neglects to mention that in march he told everyone to dump silver at 27, it wnt to 50, and he takes money, what a crooked asshole
Thanks flaunt, that helps. If I buy back the ZSL calls now, I'd lose about 20% of my non-retirement savings - which is about 2 weeks salary. This was supposed to be money for family expenses, so I feel horrible. I was originally going to write deep in the money covered calls for dividend paying stocks - hoping to pick up 2% per month. This seems like a very conservative approach, which is more my style. I saw the ZSL premium and thought "no way this goes over $23" and grabbed it. Then all heck broke loose with many of my positions.
ReplyDeleteThese options are so contrary to my trading style. I save nickels and dimes and make low-risk micro-profits that add up over time. I've been making about 20% per year the last couple of years. I've lost all profits from last year in a matter of days. I can honestly say I now know what absolute panic and extreme stress of trading feels like. I feel an ulcer developing and had thoughts of just wanting to die (which is totally not me). Its not just losing. Its what the money represents. Each week I make microprofits and read up on financial news. I calculate my worth in dollars in gold ounces - hoping for a couple percent each month. Hoping that I can move my family to a better place. Hoping I can pay for my wife to go through graduate school. Each week I made a small step forward and this week I got absolutely crushed. The good news is my wife has been very supportive.
I didn't realize my ZSL position could get exercised at any time if it is in the money. I will sell it tommorrow and go back to covered calls. Unfortunately, all the positions that got liquidated were down as well. The only bright spot is that I can write it off as a tax deduction.
As for my retirement calls I bought, I have been buying them into weakness into the lows. SLV, GDX and GDXJ have all taken a beating. I would have bought shares anyway. It was just so easy to keep buying options. Now, I'm highly leveraged.
I'll hold onto the precious metals options for a bit. I'm not looking for advice, but in general: if price does rebound is it better to start selling OTM July calls at a small loss/break even and hold my ITM Sept-Oct calls? Or should I do the flip - sell the ITM Sept-Oct calls at a profit and hold on to the OTM July calls?
Thanks flaunt. I didn't know I could get forced to buy the ZSL call if its ITM. I am buying tomorrow.
ReplyDeleteI think I'll hold on to the precious metals calls for now. I want to phase out of these calls and go back to writing covered calls for assets I already own.
One general question, if the metals market turns and heads up - I will start selling my calls. I have a SLV, GDX, and GDXJ ranging from July to December. In general, if the market heads up which type of call is it better to sell first:
OTM July contracts at a small loss.
OTM Sept-Dec. contracts at break even.
ITM Sept-Dec. contracts at a moderate gain.
@ Rich. thanks bro. i do have alot of studying and homework to do. Thanks for takin the time to explain. Wondering if there will be time to learn this stuff before our economy really turns to shit....
ReplyDelete@ LEDBED here is what my broker quoted me on may 4th:
ReplyDeleteAny interest in a December silver call spread at this point? Some options for you below. We could always spend more, less, or take a pass depending on what your thoughts. Let me know.
December Silver:
45/46 call spread: $1600 bid / $1900 offer
46/47 call spread: $1400 bid/$1650 offer
47/48 call spread: $1350 bid/$1600 offer
is a call spread different from just purchasing just an outright option? my funds are somewhat limtied so my broker works with me to make the right decision. please let me know you thoughts.
Thanks
Roger, if you're going to get rid of the calls you bought I'd do the ones that have less time before expiration first.
ReplyDelete@Earl
ReplyDeleteI'm sure you'll have time. Good luck to you!
Roger, I thought I already posted this but I don't see it so I'll post it again. I would be more inclined to first get rid of the options expiring earlier. A rule I have is that I never trade front month options unless it's just a day trade or it's a hedge and I fully expect them to expire worthless. Once an option is close to becoming front month then I seriously look for opportunities to get rid of it. It's just too dangerous too hold a contract that is expiring in a few weeks, especially in a market as volatile as PMs.
ReplyDeleteI think I accidentally posted twice... I think my first one wasn't approved before I posted the second one. Sorry about that.
ReplyDelete