The Lemon Fool

I'd like a little punt on some silver call options. Some investors I follow on twitter are buying into $slv (iShares Silver Trust) Sep 2023 and Jan 2024. Am I able to buy these calls in the UK? I'm with IG but the options list is minimal. Thanks

moneybagz wrote:I'd like a little punt on some silver call options. Thanks

Silver up 7% this week.

Gold flat.

Long term holder of both gold and silver - big jump on silver today.

I've always been scared of trying calls (or puts) on either. Price always seems to go the wrong way and/or goes nowhere and you lose out on the time value.

Gold up almost 10% and Silver down 1% this year in sterling terms.

You can do it on Interactive Brokers.

Thanks, I'll try Interactive Brokers. Its a shame I missed the rally yesterday.

Lamb to the slaughter??

GS

A couple of interesting recent articles for those interested in silver:

https://www.bullionstar.com/blogs/ronan ... ma-vaults/

and

https://monetary-metals.com/silver-phoenix-market/

Interactive Broker won't let me trade options as I don't have enough experience. I'm not sure how I'm meant to gain the relevant experience if they won't let me in. Any other suggestions?

As US interest rates increase, silver and gold prices are increasing.

Is this not counter intuitive or is it a sign of just how crazy the markets are currently ?

Laughton wrote:I've always been scared of trying calls (or puts) on either. Price always seems to go the wrong way and/or goes nowhere and you lose out on the time value.

The idea is to hold a gold fund/ETF such as GLD and SELL Covered Calls ... where you WIN the time value. Hasn't really been viable/appropriate in the zero cost to borrow era since the 2009 financial crisis, but with more recent increases in rates could be the time to reconsider such positions.

Pre 1932 when money/gold were convertible at a fixed rate (money was gold), it made more sense to hold money, deposited into Gilts, as that was like the State paying you for it to securely store your gold. A form of gold-dividend. Nowadays the Gold + sell Covered Calls yields the gold-dividend.

I've heard that GLD yields the more generous options chain than the likes of IAU