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Gold and silver prices are down
- Thread starter Rider
- Start date
Win
NES Member
Even the lows look bullish to me.
Varmint
NES Member
Like clockwork the bears are dumping gold futures on the thinly traded 4 am market.
Will be interesting to see gold’s response during regular hours. If we close back up well over $2000 I might start to doubt the $1900-1950 correction predictions.
Will be interesting to see gold’s response during regular hours. If we close back up well over $2000 I might start to doubt the $1900-1950 correction predictions.
I used that opportunity to grab a couple of these this morning. They don’t seem to ever launch sales when spot is low. But the sales often stay active if the spot drops. But now we are already above $2,000 again so need to keep an eye out for these drops.
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Varmint
NES Member
Nice bounce off $1980, former resistance level which is now support. 
Well, the current weakness brought several "in the money" calls back down below my strike price, so it looks like they'll expire worthless this Friday. See what premiums are available Monday for some more covered calls.
Bill Powers had on Nick Santiago the other day who was claiming a $1500 gap needed to be filled before an explosion upwards. With the current macro backdrop I do not see that fishing line drop as a plausible scenario.Nice bounce off $1980, former resistance level which is now support.
Varmint
NES Member
He’s wrong, he had his chance to buy down there.
I know. He made me laugh.
Btw Marathon Gold is yet again closing in on its 52 week low. Staged at Development on the Lassonde curve bodes well for getting in before 2024-25.
Varmint
NES Member
Long time between now and Friday!
How ironic. Debasing American’s purchasing power over the last 100 years by minting coinage via a Keynesian fap fest and now they want to “save American tax payers money”?
Currency is the grandest ponzi scheme.
www.cnbc.com
Currency is the grandest ponzi scheme.
New bipartisan bill would let the U.S. Mint alter the metal content of coins to save money
GOP Sen. Joni Ernst and Democratic Sen. Maggie Hassan will introduce a new bill that would cut the soaring cost of minting America's coins.
www.cnbc.com
Best get yours while you still can.
$100 Million Worth of Gold Stolen from Canada's Largest Airport.
Canada’s national police force is investigating a heist at Canada’s busiest airport. According to officials, thieves may have stolen more than $100 million worth of gold.
$100 Million Worth of Gold Stolen from Canada's Largest Airport.
Canada’s national police force is investigating a heist at Canada’s busiest airport. According to officials, thieves may have stolen more than $100 million worth of gold.
Varmint
NES Member
How ironic. Debasing American’s purchasing power over the last 100 years by minting coinage via a Keynesian fap fest and now they want to “save American tax payers money”?
Currency is the grandest ponzi scheme.
New bipartisan bill would let the U.S. Mint alter the metal content of coins to save money
GOP Sen. Joni Ernst and Democratic Sen. Maggie Hassan will introduce a new bill that would cut the soaring cost of minting America's coins.
That’s some funny shit, yeah our $31 trillion debt is cause it costs 10 cents to make a nickel.
![[laugh]](/xen/styles/default/xenforo/smilies.vb/012.gif "Laugh [laugh]")
Varmint
NES Member
Hey Canada, your government owns no gold, maybe you should buy the gold produced in Canada instead of shipping it to China?
Varmint
NES Member
Short time between now and Friday!
Indeed. Even if the few positions rally big time tomorrow, I'll just roll them forward. I expect they will simply expire out of the money, but you never know...
Varmint
NES Member
By roll them forward so you mean buy new calls to replace them?
Also what’s the difference in profit/loss if an option closes in the money vs a few cents below? Below you get zero, what do you get if it closes just in the money? You get to own the shares?
Varmint
NES Member
Oh look, someone is dumping huge volumes of gold at 3-4 am, driving it below $2000, haven’t seen that before.
n1oty
NES Member
It wasn't me. I swear!!
Looks like the buying opportunity is almost here. Both futures and spot below $2000 now.
Same trades are posting around 4am in the bearish gold etfs so it’s a concerted effort to game the markets.
Varmint
NES Member
Yes, if you’re trying to maximize your profit the last thing you’d do is dump huge amounts on the market when few traders are active.
The goal is to drive gold down even if you lose a lot of money doing it.
Who would have the incentive to do that?.
I am selling covered calls in this instance. If the share price is above the strike price at expiration and I do nothing, the underlying shares will be "called away" from me at the strike price. I can buy to close my "in the money" position, if I choose to and close it out, retaining my shares. To offset this purchase, I can sell a later date contract, hopefully at a higher strike price.
Varmint
NES Member
I find options and mahjong completely unintelligible.
If buying options (a very risky scenario...most option buyers lose $$), you benefit when you sell your option position at a gain. Most option buyers never intend to purchase the underlying stock.
Let's say you purchase ten 19 May 2023 AG (First Majestic Silver) $7 calls at 54¢ today. If AG moves higher before expiration and you have a 95¢ bid on your May 19 calls, you sell (close) your position and realize the 41¢ gain on your calls. You could always exercise your calls and buy 1000 shares of AG at $7 a share, but that means coughing up $7000.
Majong, like reddit are time wasters. They fill a void when you are bored, I suppose.
Ooh, as far as covered calls are concerned, assume you own 1000 shares of AG at $7.12 per share and want to generate some additional income (actually, premiums are treated as a capital gain). Unless you expect AG to rocket to the moon in the next few weeks/months, you look and see what premiums are available. The 16 Jun $8 contract is bid at 31¢. If you think that's fair and you are willing to have your shares called away at $8 within 56 days, sell the calls and reap your $310 premium.
If AG closes at $7.95 at expiration (and you still hold this position), your option will expire worthless and you net 100% of your $310 premium.
If AG closes at $8.20 at expiration (and you have done nothing) you will have your shares called away at $8. In reality, you are getting $8.31, if you add on the premiums you received (generally, premiums reduce your cost basis, but you get the idea).
In a nutshell, selling covered calls against shares you own, reduces the risk of owning these shares.
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Varmint
NES Member
Options for me would be a money waster.
Some things I just don’t get, like thermodynamics or electrical engineering.
Varmint
NES Member
Cool, so if the option gains $0.41 does that mean AG went to $7.41, or not really?
I guess it’s like futures traders, they don’t want the metal just to make money on the trade. Thank you for the explanation.
![[thumbsup]](/xen/styles/default/xenforo/smilies.vb/044.gif "Thumbs Up [thumbsup]")
Well, stay away from them, if they confuse you, but you are turning away additional income and risk-reducing measures.
For anyone looking to enter this arena, I'd suggest only upgrading your account for "cash" trading, that is "covered call writing" and "cash-secured put writing". You can purchase options in a cash account, but that is a riskier strategy, although, if you get it right, you can realize tremendous returns (I never get it right!).
Varmint
NES Member
Another question I was wondering is can you set buy orders for options that get triggered in a day or week at a certain price? Or do you have to manage it daily?
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