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Amid a lot of chatter about silver being in a bubble, somebody may have backed it up with...

Amid a lot of chatter about silver being in a bubble, somebody may have backed it up with dollars, purchasing 100K deep out-of-the-money puts on the silver ETF (SLV -1.8%). Not necessarily an outright bearish bet, the purchaser could be long silver and using the puts as a hedge.
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Comments (6)
  • Screwloose
    , contributor
    Comments (389) | Send Message
    A wise move to hedge long exposure.


    Summer's seasonal dip will be about at it's maximum by July's Op-Ex - couple that with the unknowable volatility that the end of QE2 will cause and a little insurance doesn't seem a bad move.
    11 Apr 2011, 03:40 PM Reply Like
  • Boxed Merlot
    , contributor
    Comments (1589) | Send Message
    a little insurance doesn't seem a bad move...


    “It’s so far out of the money that the buyer is probably just looking for a moderate pullback because a $3 retracement to where it was in March could double the position to $2 million.”


    11 Apr 2011, 06:14 PM Reply Like
  • winstonc
    , contributor
    Comments (215) | Send Message
    Dollars to dognuts this is a play to flush out SLV - let's see if this trader demands delivery-and then we'll se if there really are ounces to cover those shorts.
    The big hounds have been looking for a step on silver for months. Ready-up that cash, fellas. Buying op ahead.
    11 Apr 2011, 11:17 PM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
    Hmm delivery?


    I was wondering if anyone was going to make a comment in this post in light of



    but no one seems to be biting.
    12 Apr 2011, 10:36 AM Reply Like
  • 22thoroughbred
    , contributor
    Comments (562) | Send Message
    He bought PUTS he can't demand delivery, all he could do is DELIVER his physical if you were correct, and I doubt he will sell his for $25/oz
    12 Apr 2011, 03:07 PM Reply Like
  • 8Ag8
    , contributor
    Comment (1) | Send Message
    I am bullish on PM's (Ag & Au) and enjoy the chatter associated with market events. I am a newbie to the market and these discussions help me to better understand both the market (direction) and my position. I got into physical Ag & Au about three years ago when I sold my over priced home to some poor Bugger (a sheeple) who lost it about 1 year latter. I seen the housing market burning in the wrong direction and got out of that house just before the crash and burn cycle started smoking heavy. Made some damn good $ and wanted to put part of it in physical asset classes versus paper promises which have no solid backing. Hence the name 8Ag8. I will get an avatar which is interestingly strange but appropriate and not politically correct/wrong.
    15 Apr 2011, 03:31 PM Reply Like
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