On Tuesday April 26th, I wrote two blog entries. In one, I mentioned how i had heard on the radio a financial commentator talking about metals. I bought some cheap puts, because I am in the opinion that when the news hits the national media, you absolutely have to go the opposite way if you want to make money. Silver was trading around 48 cents an ounce. I bought two 38 cent puts, two 36 cent puts and three 34 cent puts.
For gold, it hasn’t panned out so well as of yet. On April 26th we settled at 1503. I bought two 1425 puts. Those may or may not come into play. We will see how they turn out.
With the volatility in the Silver, its imperative to stay away from outright futures positions. Options let you limit your liability, while eliminating the nasty margin calls.
Yesterday’s action in the metals was made worse as margin clerks blew out longs who were long silver. Looking at a chart, these metals look over done and ready for a pullback.
That is all
CER