Not such a great idea after all

Stedlar · May 26, 2011

From zero hedge

http://www.zerohedge.com/article/easy-come-easy-go-slv-put-buyers-story-comes-close-wash

A little over a month ago, when silver was trading at just about $40, a silver put buyer made headlines (and even arguably moved the price of the metal) after buying $1 million worth of SLV July $25 puts. The same buyer made further headlines after he or she generated a 68,294,229,502,717.3% annualized return 4 weeks later. Well, today the trilogy comes to a close with the last headline saying something to the nature of "easy come, easy go..." - following a massive surge in the July $25 puts volume, we have learned that the same put buyer has offloaded his entire 10k put block.... at a complete wash. In other words, someone just got a very stark lesson in why a 500% paper profit can be converted into a 0% realized non-profit (and loss when factoring transaction costs) in just three weeks.
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Not such a great idea after all

Stedlar Active Member

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Not such a great idea after all

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