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Remember those July $25 silver puts someone made a paper fortune on in the silver crash earlier...

Remember those July $25 silver puts someone made a paper fortune on in the silver crash earlier in May? It appears they hung on too long. A surge in the July 25s today could mean the position is being covered ... at breakeven.
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Comments (1)
  • Jeffry Chmielewski
    , contributor
    Comments (600) | Send Message
     
    Not true... you're ignoring the profits from the gamma. Because the REALIZED volatility was much higher than expected, the option position was very profitable, even if eventually covered at the original purchase price.
    31 May 2011, 02:12 PM Reply Like
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