why I just loaded June calls on the silver train

Discussion in 'Options' started by mksummny, May 5, 2011.

  1. So I just loaded up on June 36 calls on the SLV. I have seen this too many times when an oversold condition like this slingshots back on a one day nasty rally. I am in for the double. Position is at 2.25 and I put about 50k total in them. I am looking for a double.
    SLV will most likely move a little lower but when the rebound comes it will be a nasty spike to the upside. (12 years of trading and my gut is calling to me on this trade). I'm willing to take the loss on the trade but think I will come out ahead.
  2. i like it, i'm long 100 dec 12 calls
  3. silver down 25% in one week, most since 1983. Even though it was overbought the margin sellers that had to sell are on the 3rd day now of liquidating. This is the bottom. 33-34 is a buy imo for a bounce to 38.
  4. im taking a little right here at 34.18
  5. Have a friend down 150k on a SLV trade right now (intraday) and he is holding strong or dumb, depending on your side.....
  6. there is forced liquidation going on somewhere but it should be able to get a bounce tomorrow.
  7. dang....a lot of people...myself included were looking for the bounce today....I looked and looked and traded a ton of shares of SLV with nothing to show for it overall but a few hundred in losses and a lot of commissions. Thought about holding some overnight but it's still getting hit after-hours.

    Will be there early-premarket to see what transpires. Hoping for a gap down!
  8. the key is Monday. It will be the 4th day of margin liquidation and in my experience the effect last only 3 days with the 4th being the bounce. I would rather be early than late on this train. Its a rubberband effect I am looking for.
  9. Picking a bottom can be just as difficult as picking a top.

    A lot of other factors at play here, not just margin requirements. The dollar rallied today. The drop in the stock market depletes account equity as well.

    As we get closer to May (26th) delivery, silver should firm and demand should again take hold.

    From what levels is the question...

    Massive massive all time high volume in SLV today.
  10. The high volume also suggests a reversal. :)
    #10     May 5, 2011