In case you want to trade paper :lol: We all know Dealers hedge their physical position through futures market. You might not be able to afford that; however, you could short some GLD (gold ETFs) to protect your physical position, too. Just a thought.
Are you able or can you to (or be bothered to) explain the process of how this is done to some of the newer people in the game? It sounds an attractive proposition.
Not exactly a new idea... Members like WRCMAD have been doing it for years with great success- http://forums.silverstackers.com/message-663471.html#p663471
"A new idea" you say? haha :lol: aww always thinking you're giving new ground breaking info hey Leon. If you want to put up a useful post for once in your life then at least show the steps on how to do it and not just say do it. That way people like "BillsToPay" can learn something from you and not just hear you talk dribble.
I highly doubt if many stackers know and use this strategy; if they did, there wouldn't be so many bagholders complaining about the market manipulation; since their paper loss would be hedged anyway. That's why I believe this info is still NEW to the majority of stackers.
So you are saying that if someone doesn't engage in something its due to them not knowing? Did the thought ever enter your head that some people just don't want to take part in some things? I know drinking a lot of alcohol makes idiots seem more interesting and thus will make my night appear better, but even after knowing this i still don't like to get drunk. Instead ill just complain for a bit to the missus. That's why I believe your info is still BS to the majority of stackers.
So there are several ways to use this "new" strategy. The way I use it is simple you have to have a brokerage account that allows you to trade options. i simply buy some out of the money puts on silver that expire in 3 or more months and I do this when volatility is low (thus the options are "cheap"). I buy roughly 1 put for every $2,000 of silver. I can't remember the logic behind that amount, so could be easily argued to be higher or lower. The put increases in value of silver moves down and my physical increases in value as silver moves up. If silver moves a long ways down, I sell my put and buy more physical with the increased value. You could also do this by selling uncovered calls, but requires a ton of margin and has a large amount of risk. I would guess leon doesn't actually know what he is saying to do. Thus the reason he never explained anything regarding the strategy.
