Quote:
Originally Posted by lewdog
Hedging with commodities in a down turn. It’s not if but when investors move money to them when stocks go down. Looking to close option for profit, never owning shares though.
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You don’t own shares of a commodity, you own a contract. Like a deliverable production contract. It’s not. But that’s what you’re doing. Looks like silver is 5000 ounces. But there are minis available.
As a dude that’s lost a mountain of money hedging, but if you’re certain that investors will move their money there within 4 months, just buy the damn contract. It won’t crater bad enough for your margin calls to get out of hand. Thing is if you’re right, you’ll get in the neighborhood of half the money. If it is indeed an “when not if” thing in the next 4 months, just do it dude. Options suck.