Quote:
Originally Posted by Buehler445
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.
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Small hedge. Basically only play I want to make until market stabilizes.
I know what owning a contract is.
I disagree. Im looking to profit without having to expense large positions of capital to do so. I’m not greedy with my call options. I look for a spike and sell to close position for profit. Just did it with SLV in early February for a $250 profit in a few weeks.
I’ve closed 80% of the calls I buy for profit as I don’t buy tons of really short term calls and buy many close to in the money. I’ll pay the premium for increased duration and close them on spikes