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There's Some HUGE Put Buying & Bid Sizes In March Silver Today

BigRickBigRick Posts: 1,334
in Precious Metals
Especially the 12, 15, 17, 19, 20, & 24 strikes.

If you can believe it, the '12's went for as much as .009 & the '15's went for up to .020! image

Any thoughts? image

My Sets

Comments

  • derrybderryb Posts: 37,271 ✭✭✭✭✭
    PMs will continue to take a beating. Get the cash ready and gas up the truck.

    Gold has a world price entirely unaffected by accounting games between the Treasury and the Fed. - Jim Rickards

  • RedTigerRedTiger Posts: 5,608 ✭
    If the trades are in size, it is almost certainly multi-leg strategies, likely delta neutral net-net. Remember that option trades are often offset by futures positions, often in other underlyings (silver/gold cross, or silver/dollar/Euro cross) so looking at the options in isolation can be a mistake. Unless a person has first hand information about the nature of the trades, just looking at the trades isn't going to tell a person all that much. For the most part, for little fish, it isn't worth looking at most of the data. Bigger picture data, yes. Isolated specific trades, specific volumes, not so much.

    Investment blog: gold, stocks and more
  • jmski52jmski52 Posts: 23,049 ✭✭✭✭✭
    Bring it.
  • JustacommemanJustacommeman Posts: 22,852 ✭✭✭✭✭
    Try asking the copper traders how that worked out for them in October when they had the same planned laid at 5-1. You can find most of these guys living in their mothers basement and taking public transportation these days. Most OOTM options go unexercised and go worthless.

    I'd also like to think that those with bigger physical positions would be hedging here as well and that would contribute to the net short numbers. I know I am.

    I would also want to take a look at all the spread trades and how they are laid out

    It's actually nice to see some bearish bets/sentiment come back in the market . It's hard to go up without it

    Thanks for the heads up although it probably means very little as predictive measure although lower silver prices would be welcomed by most.

    MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • JustacommemanJustacommeman Posts: 22,852 ✭✭✭✭✭
    dollar leaking badly today. Just broke 77.88..........................wow
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • OPAOPA Posts: 17,133 ✭✭✭✭✭


    << <i>It's actually nice to see some bearish bets/sentiment come back in the market . It's hard to go up without it >>



    How true...

    We need more like this:

    The Taurus Fund Management Pty sold all of the silver holdings from its $200 million precious metals portfolio, citing the fact that, in its view, “[silver] simply went up too much in too short a period.”

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • RedneckHBRedneckHB Posts: 19,393 ✭✭✭✭✭


    << <i>Especially the 12, 15, 17, 19, 20, & 24 strikes.

    If you can believe it, the '12's went for as much as .009 & the '15's went for up to .020! image

    Any thoughts? image >>




    Just because those strike prices traded doesnt mean the buyer thinks silver is going to those levels. For example, if silver goes to 22, those 12s might trade for 4-5c. Thats a 300-400% gain.

    FWIW--I frequently sell deep out of the money calls and puts, for as MJ stated, these almost always expire worthless.
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