“Our trade of the week focuses on silver amid lower nominal and real rates, and the prospect of greater ETF inflows. With option volatility on the rise, volatility-selling is becoming more attractive.”
READ THIS DISCLAIMER
NOTE: WE DO NOT RECOMMEND YOU DO THIS WITHOUT KNOWING THE FULL RISKS OF OPTION SELLING.
IN FACT WE DO NOT RECOMMEND YOU DO THIS AT ALL WITH ONE PENNY OF MONEY YOU CANNOT AFFORD TO INVEST IN SILVER.
JUST KNOW OTHERS WILL START DOING IT. THIS BANK’S CLIENTS HAVE A LOT OF MONEY AND KNOW HOW TO MANAGE IT
AND WHILE IT IS A SIMPLE IDEA FOR PEOPLE WHO WANT TO BUY SILVER CHEAPER AND ARE CASH RICH, PLENTY OF UNDERCAPITALIZED FOLKS WHO WILL DO IT NOT KNOWING THEY WILL HAVE TO BUY SILVER LIKELY AT A HIGHER PRICE THAN WHERE IT IS TRADING WHEN THE SHIT HITS THE FAN AND THAT WILL BE THEIR RUIN.
Please read the above again to fully satisfy our disclaimer
But its a good idea if you know the rules, fully understand how option margins work, understand stochastic volatility, and have 200% notional unimpeded available for each contract sold.
Cheers