Opinions and observations expressed on this blog reflect the authors' individual experiences and should not be construed to be financial advice. None of the members of this blog are licensed financial advisors. Please consult your own licensed financial advisor if you wish to act on any recommendations here.

Monday, May 2, 2011

Going Short On Silver?

In the interests of full disclosure, I opened up a June put option position on SLV that already yielded a whopping 63% return just since this morning. Of course, that can disappear in an afternoon as this is the options market after all. I fully expect the silver bulls to make another run at it, but frankly this thing is overdue for a major correction. It is hard to justify the run it's had.

That being said, I didn't exactly go in full throttle because bubble markets can produce huge surges that can come out of nowhere and obliterate the short side of the trade. However, I'm reasonably convinced that this thing is coming to an end and soon. The fact that volume and price went up together exponentially in the last few weeks was indication enough for me.

Of course, if I'm wrong, I'm out about $500. Easy come, easy go. I in no way recommend one action one way or the other on this, and do not recommend playing options unless you have money to blow.

On this particular point, I would emphasize the disclaimer on this blog that I am not an investment professional and nothing posted on this blog should be construed as investment advice.

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