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Also keeping my eye on Silver as Gold continues to make new highs. I think that gold might be a crowded trade and I have seen it take the stairs up nice and steady, but when it is ready to fall it just jumps off a cliff.
Silver still has plenty of room to play catch. I will be looking to sell some puts somewhere in the 18-20 range.
I am able to capture about 20% of my DRYS put spread at the 2.5/5 strikes. If there is a big enough pop in the next few days that will allow me to take 50% or more of the total max profit I will look to close out the position to book profits and look for the next trade.
I have seen DRYS up here between $7-$8 way to many times just to see it drop again. If this is the case I will look for another opportunity to sell some more puts at the $5 strike if it is attractive enough.
This morning I nibbled on a few naked put contracts collecting $2.50 per contract.
I only sold two puts on SLV at the $16 strike for a total maximum gain of $500 with Jan'11 expiry. If I am exercised my purchase price would be $13.5.
Jason and I have discussed this before. Silver is always going to have some kind of intrinsic value, in other words it is not going to go to zero. So if need be I will sell covered calls against it if I am ever exercised. If we see a pull back I will look to add to my position. I just wanted to have some exposure.
Also keeping my eye on Silver as Gold continues to make new highs. I think that gold might be a crowded trade and I have seen it take the stairs up nice and steady, but when it is ready to fall it just jumps off a cliff.
ReplyDeleteSilver still has plenty of room to play catch. I will be looking to sell some puts somewhere in the 18-20 range.
Will keep you posted.
Baltic dry bulk index rises 3.8% to 4,381, for 14th straight gain.
ReplyDeleteI am able to capture about 20% of my DRYS put spread at the 2.5/5 strikes. If there is a big enough pop in the next few days that will allow me to take 50% or more of the total max profit I will look to close out the position to book profits and look for the next trade.
ReplyDeleteI have seen DRYS up here between $7-$8 way to many times just to see it drop again. If this is the case I will look for another opportunity to sell some more puts at the $5 strike if it is attractive enough.
This morning I nibbled on a few naked put contracts collecting $2.50 per contract.
ReplyDeleteI only sold two puts on SLV at the $16 strike for a total maximum gain of $500 with Jan'11 expiry. If I am exercised my purchase price would be $13.5.
Jason and I have discussed this before. Silver is always going to have some kind of intrinsic value, in other words it is not going to go to zero. So if need be I will sell covered calls against it if I am ever exercised. If we see a pull back I will look to add to my position. I just wanted to have some exposure.