OK. The reason I used the word "dividend" in "" was to communicate that it was not a dividend, but that it was yield/income whatever you want to call it. Silver and gold are criticized as not having any dividends, yield, or profits by Buffet. Which is true. So I was trying to get people's attention that what Buffet claims is not possible with physical silver, is possible, thru SLV diagonals. So I used buy the miners mostly as they do have those things. Whereas there are gold miners that are safe investments like Karora, silver mining is a terrible business that almost everyone fails at or limps along. FSM is an example, way better than most. So gave up on silver miners. So looked for a better way to play silver and found it. No govs stealing mines, no floods BKing a miner like what happened to Trevali. It is doing diagonal SLV spreads as in my article. If you have the direction wrong it will not work, but it is the best way to make money off of silver that I am aware of. It produces income way beyond any miner, and it is daily income. When SLV is about even on a day my profit for the day is about what the theta for all SLV options in Power ET said it would be. I would never think of becoming outraged at anyone else, whatever they wanted to call theta income. If one get divs per Q that is more dangerous, 2 months later you may have to sell, the company could end it before it is paid, etc. If 4% annual div and stock goes down 30% that is 26% loss, if you have 60% theta income you make 30% a year, if silver sits drops 30%. I see people getting into iffy silver miners and losing all the time and try and tell them of a better way. So, with PL pics to back it up, decided to write an article about it. Many in the past told me that options were too complicated for them. So, I tried to make it short and simple. Back to my question. I do not know gamma squeezing well at all. There are 3 short 1 week options and five 6 month long options. If a ton of those were put on, would it overall cause a gamma squeeze? As to me, since switching 95% to diagonal option spreads I have been making money on options. On stocks, not options, I do not know anyone that has as good an investment record as I do personally. In terms of famous people in his first 20 years Buffet had a better record, but for an entire career that is 20 or more years and that there are articles on, the top three are Joel Greenblatt at over 30%, Soros think at 26% and Buffet at 20%. My 20 year CAGR is 23.86% which would put me at #3. Probably people out there with better records that are unknown as I am. Jim Simmons is not an investor, but he has best record. Hedge Funds are judged on last 3 years CAGR and they are ranked. The last 4 years or so my 3 year CAGR has been better than any hedge fund. For 2022 my 3 year CAGR for my ROTH IRA is 145%. A 16 bagger for the entire account in 3 years. That is however the best 3 year CAGR ever in any account for me, an abberation. And for all accounts I had a small gain in 2021 and a moderate loss in 2022. It has been that way all along for me. 2016 and 2020 were spectacular gains and only one other year last 7 was a really big gain. In last 9 years for all accounts my 3 year CAGR averages out about 35%. Just curious if the type of Diagonals I proposed would work for gamma squeezing. Cheers
you doubled down on the dividend comment with some hogwash about Puerto Rico. Income is cash in the bank. Theta is just an accounting term. It’s part of a calculus formula to explain your pnl from premium to max(s-k,0). I’m glad you are profitable. The difference between you (and me) and those three is that they produced stellar returns on billions of dollars. One of Warren buffets investing deputies grew his ira by 30percent cagr over the last 30 years. It’s at 250mm. You aren’t going to gamma squeeze silver.
In the "Market Wizards" books he picked up that the most successful investor/traders had a consistant oddity. Which was unlike most people that say you have not lost or made money on a stock untill you sell it, those selected for the book overwelmingly thought the opposite. That each day and hour whatever was on paper was real, they had made or lost that money as that is what they could sell it for then. I have always been that way. Cheers
marked to market gains and losses are real in that they represent what you could liquidate the portfolio for. This is not the same as a dividend nor the same as income. your marked to market gains today can become marked to market losses tomorrow in the blink of an eye. You've been trading for 20 years with a track record that beats all those guys in the book and don't see this?
Possibly since the Diagonal spreads is a variation of a call but it's not going to be as effective of a pure call as far as gamma squeeze goes. If you really want to gamma squeeze a security, buying calls en mass would be more effective I would think.
Thanks TheDawn. It would seem that it would be 40% as effective as 100% long calls, which is quite a bit less, but then again the dollars spent to get in are less. My guess without knowing the formula is per dollar maybe 50-60% as effective as straight calls.