Just a few minutes ago, TV showed the protests in Spain growing, so the Euro is crashing rather strongly, increasing the relative strength of the USD. Thus PM are also down. Volume is on downward sales. It is a risk, but I think a good risk /reward on the SLV Nov. call options at 33 +/-. So I am entering at that point. I don't expect to hold for more than a couple of weeks , certainly not to the 3rd Friday of Nov. If you like better leverage, then Oct would also do. If I lose, all physical people can laugh. In at 1.30. jim
Much more daring and a trader than I am sir. I am a low stress, buy and hold until I change my mind in a couple of years kind of guy. For PM, I buy when I feel the price is relatively low, like this summer. I kind of enjoyed feeling better about buying junk silver and low premium silver coins again, but this new upsurge again has me on the sidelines.
If you shun the physical PM then I offer up this. I think you should take your duckets to Las Vegas, or any other resort based gambling casino, and place your bets there. At least you know the odds and you the fringe benefits are a lot more fun.
What an assumption. So one either is a "stacker" or they are a gambler Sure it is a risk, but it is part of my "speculative play" money. I understand the risk, I understand how to use tools to value options, and my broker offers tremendous tools to help. So if I lose, I will have regret the market went a different way. My risk is limited to just what I paid today, and I have all of you stackers cheering for silver to go up and according to them, there is no doubt! I am just being slightly sarcastic in return Jim
^No offense was intended and commentary was given in jest in response to your jocular remarks about the laughter of physical buyers. You ought not take it seriously that I meant that one had to be exclusive to anything or anything about you specifically. You have my respect sir that you know what you were doing or I wouldn't have tried to tease you.
Nice clarification, thank you for posting it. I am as guilty as anyone taking things the wrong way here at times. Unfortunately the internet cannot see our facial expressions when typing, and most humans underestimate how much we use that to gauge the nature of what is being said.
I do apologize to you Fatima. I don't share your views on PM often, but I was chuckling as I wrote. I don't often post what I am doing, not that I am worried about being wrong or embarassed, just private business, but I did want to show that not all are physical only collectors. Again, I also didn't mean to offend Jim
I don't want to jinx this, so I hope you hit it well, very well. As many have said, it's never a bad time to take some profits. So bail on it when you see fit....
Actually, since I'm in for the long run, I'm hoping the bottom falls out and we see $5/Oz again sometime soon.
Good luck with your trade. The objective is to earn an after tax rate of return higher than inflation and there are many ways to do this -- options, stacking, common stocks, real estate and even bonds It's all about how much knowledge a person has about the investment tool they are using.
Well, I decided to close the position at end of today @ 1.77 as both silver and Silver spot kept faulting at 34(SLV) and 35 SPOT. Spot was above 35 about a half dozen times, but couldn't hold it. No sense in taking any risk as it will either head back to 34 if the dollar strengthens against the Euro, or will crash through it if Spain finally settle if they are going to take the bailout for sure. I wil buy back in if spot drops to 34.4 +/- or tops 35.2 and stays there for a few days. So after broker commissions, I made about .45 pershare on 40+ calls or 4000+ shares. To me the situation was very favorable or I would have done differently. This has made me feel odd as I don't like to mention gains, but since I started off, I felt I had to finish the story. Interesting 10 days. A portion goes to Salvation Army food needs, a habit when I do well with help. Jim
Thanks Ripley! Well, the SLV and silver spot went south nicely below the numbers in the previous post, so I am back in again, but I won't keep the thread going on it, just that I was truly blessed and lucky. Jim
Thanks! but I must give TDAmeritrade credit for the nice software and feeds they provide to account holders. It has an intersting name "Think or Swim" , I often call it "Sink or Swim" I must admit I was happy to see the sale cash from yesterday in the accounts, but I guess that is like being a paper "Stacker", so back it went. Now I will have to watch some Euronews rather than all football games.
Desertgem what's your latest take on the development in €-land and the rallying stock markets and the decline in pm and oil?
Some may argue differently, but I think the Euro situation is a long and volatile opportunity, with China and friends to follow them. Politics is politics , no matter where they are. Politicians put up a strong defiance, their currency tend to go down compared to others. Politicians put up a sigh and say "I did all I could", things calm down. When the Euro is down, high probability the USD is up and commodities down as they are priced in the USD, but that is a generalization or no one would be buying or selling, they would want to be on the same side of the trade. Oil, gas, ag commodities have their own factors. But if I knew what I was doing, I would have my own newsletter, where the real money is. Being in Germany, you see better the sentiment of the various countries ( including yours) and the "shuffling" of the politicians in power, and since Germany has many large banks that also function within the US, it will definitely be the base of the Euro outcome , INMO. Jim
That's basically the point, I see the current political development and tend to look at the development on the markets and I've too often to realize that there is no rational explanation to their side. In my opinion market development is totally unpredictable today. I agree with you that there are no simple answers but there is also no rationality in the movement of things, which creates a horrible climate to make investments.
