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Options trading strategies for stacking mining shares and/or yield.

solarion

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The cruise lines are boned for a multitude of reasons. Inflation + operating costs + security + tyrannical mandates = completely effed.

I'm sticking with my commodity plays. I intend to create a very concentrated position in the most beaten down of junior miners. That means SILJ. Coming off very nearly a 52wk low price into massive inflationary forces, skyrocketing energy prices, a weakening dollar, tanking bond & equity markets, it's difficult to see a scenario where small silver/gold miners don't outperform.

As a result I've stacked a few more Jan 20 '23 strike 5 calls on SILJ this morning on weakness and have been impressed with how it has rebounded sharply from the takedown this morning. Dare we think people are *FINALLY* getting the message that price inflation isn't going away anytime soon? ...or that the fed will not be fighting it?

I'll be adding a single short call at the money to each stack of 4 long calls at a strike and expiry that makes sense at the time. This should keep theta decay in check while keeping deltas high and providing some reduction in alpha. Gamma is low, but that won't matter much as this is intended as a relatively long term play(for options) with a timeframe of roughly 5-6 months before significant adjustments should be necessary.

Currently I'm at 8 long and 2 short calls yielding 6.644 deltas and +0.0016 theta. I would estimate that a 1 dollar move higher in the silver price should result in roughly a 12.5x move in this positions value. Not too shabby for < 5k worth of contracts and minimal margin involvement. lol
 
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Voodoo

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The cruise lines are boned for a multitude of reasons. Inflation + operating costs + security + tyrannical mandates = completely effed.

I'm sticking with my commodity plays. I intend to create a very concentrated position in the most beaten down of junior miners. That means SILJ. Coming off very nearly a 52wk low price into massive inflationary forces, skyrocketing energy prices, a weakening dollar, tanking bond & equity markets, it's difficult to see a scenario where small silver/gold miners don't outperform.

As a result I've stacked a few more Jan 20 '23 strike 5 calls on SILJ this morning on weakness and have been impressed with how it has rebounded sharply from the takedown this morning. Dare we think people are *FINALLY* getting the message that price inflation isn't going away anytime soon? ...or that the fed will not be fighting it?

I'll be adding a single short call at the money to each stack of 4 long calls at a strike and expiry that makes sense at the time. This should keep theta decay in check while keeping deltas high and providing some reduction in alpha. Gamma is low, but that won't matter much as this is intended as a relatively long term play(for options) with a timeframe of roughly 5-6 months before significant adjustments should be necessary.

Currently I'm at 8 long and 2 short calls yielding 6.644 deltas and +0.0016 theta. I would estimate that a 1 dollar move higher in the silver price should result in roughly a 12.5x move in this positions value. Not too shabby for < 5k worth of contracts and minimal margin involvement. lol

Have you looked at the Sprott ETF, SGDJ? Very similar area and I think they should be a better basket. Juniors really require some knowledge and not just buying a basket of MC or something. Are there options and are they more liquid or less?

Edit: just looked and there is almost nothing on SGDJ.
 

solarion

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No the sprott stuff is generally lacking option contracts. I recommend them to friends that insist on stacking ETFs regularly as they're a clear step up from anything JP Morgan managed, but they're not for me, as I stack physical and then actively fiddle with derivatives. I don't really see the point in ETFs that aren't ARCA listed.

Anyway, SILJ is down roughly 8% more than SGDJ YoY and more importantly is very cheap in nominal dollar terms at just over 11 bucks. The law of small numbers being what it is, means it should gain significantly more on a percentage basis if/when the PMs are ever allowed to rise than a fund with a NAV over 3x higher. I've also, thus far, avoided stacking calls on the GDXJ for similar reasons.

Also a lot of the "silver" miners have diversified into gold mining during the protracted silver beat down, so even formerly pure silver plays like First Majestic now get a significant portion of their revenue from gold mining. First Majestic is also the largest holding in SILJ, which doesn't break my heart. I believe Yamana gold is the 5th largest, so there's significant crossover there.
 

solarion

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Quite a day for the metals. I bought back one short call on SILJ for 1.85(-.10) before silver really got rolling, so now I'm at a slightly negative theta of -0.0014 on the position. I may look to establish a new short call position...probably around a 13 strike or I may switch to selling OTM puts...I haven't decided. The remaining 8 long calls appreciated .6(x8) and 1 short call dropped by .28, for a total of +4.52(9.15%) based on an SILJ move of +0.58(5.19%) and a silver move of +0.52(2.31%).

Comparing the performance of this investment to the performance of a similar cash outlay in paper silver and/or SILJ directly over time may prove interesting. This construct at 8:1 cost a total of 4939, which provides 7.2184 deltas on SILJ. The same amount spent on SILJ directly would have resulted in 444.95 shares....or 219.02 ounces of paper silver. The performance after one trading day would look like so...

Silver +0.52*219.02 = +113.89(2.31%)
SILJ +0.58*444.95 = +258.07(5.23%)
ZEBRA +452(9.15%) 3.96x paper silver or 1.75x SILJ shares.

I'm considering a position also in KWEB. This is a formerly high flying Chinese Internet ETF...down about 70 bux(67%) just since Feb of 2021. This to me is a bit of a contrarian play as the PBOC is allegedly moving toward an interest rate easing cycle, while all the other central bank crooks are allegedly tightening. This should lower the value of yuan while stimulating investment in tech in China. Anyway, the thing has solid long term support around 33...so something I'm considering in addition to various commodity plays.

1644276446900.png


Edit:

This morning, I stacked 6 Jan 19 '24 SILJ 8 strike calls @ 4.85 each and combined that with 2 short sold 11 strike Jan 19 '24 puts to help offset the theta. These I sold for a credit of 2.4 apiece. Obviously a very bullish concentrated long term SILJ position, but it's justified to my mind as I expect long term support to hold.

1644335676393.png


I will be watching oil closely here as well. If the current pullback peters out and begins to build a base, then it will be, to my mind a good entry point. I will likely look for a decent crude ETF with available medium term options to build a position.
 
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solarion

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Bought 4x SAND 4 strike Jan20 '23 calls with the monkey business the futures market riggers are playing today. It was down a nickel or so at the time right around 6.19 a share. The calls were running 2.50 a pop at the time. Sandstorm is a gold royalty company.

Also picked up a couple GATO calls. This is something of a long term value play as it's beaten down very badly(and for good reason). I grabbed 2x Dec16 '22 strike calls with a strike price of 2.5. This is a flier in anticipation of an oversold bounce for the most part. Seems like it was in the teens last time I traded this thing.

Also keeping some funds on the sideline in case tomorrow's rigged CPLie number is used as an excuse to beat down the metals.
 

solarion

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Picked up a call on the URA uranium ETF. It appears to be consolidating for another run, so I added a Jan19 '24 17 strike call and will be looking to add another on weakness.

Added also a Jan20 '23 25 strike on KWEB(Krane shares) which is a Chinese Internet infrastructure ETF. This is a play on the diverging interest rate cycles between China and the rest of the world as well as a bit of bargain bin pick since it's down 64% from its 52wk high.
 
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solarion

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I've rolled 8 SILJ Jan20 '23 5 strike calls forward to 8 SILJ Jan19 '24 8 strike calls for a credit of 1.90 apiece(15.2 less transaction fees). This lowers SILJ delta exposure to 13.41 from 14.61 while obviously moving expiration out a year and releasing buying power.

So my SILJ position consists of (16)8 strike Jan19 '24 calls and -2 Jan19 '24 11 puts.
 

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SILJ should be printing today.
 

solarion

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It's +0.68(5.80%) currently. Eventually I expect gold and silver miners to move far more independently of equity, bond, and forex market gyrations(as they are today) as more and more dimwits finally get it through their heads that price inflation isn't going away anytime soon and the fed can't do shit about it.

Oil is up 4% today @ 93.48. This is just more price inflation fuel heading our way and people that think dollars aren't going to get real melty real soon are in for a rude awakening.

Snapped up another call on the URA uranium index, so I'm at (2)Jan19 '24 17 strike calls. Also sold a sandstorm Sep16 '22 6 strike put to raise cash, offset theta decay.
 
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Voodoo

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Who wants to bet they are letting metals run a little bit ahead of their "emergency" meeting? If they are going to raise rates starting today you can bet they will use the opportunity to smash the already fake prices.
 

solarion

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Ordinarily I'd agree, but some things have changed. First, I think an emergency rate hike is unlikely because it says to everyone that the fed is panicked...and that's contrary to the bs inflation narrative they've been selling. They need to appear to be in control of the situation, even though they're obviously effed and so far behind the rate hiking curve that their hikes will only trash markets without having much effect on price inflation at all. That'd be true even if oil weren't soaring...which it is.

I personally think they're doing the emergency meeting thing to jawbone rates up a bit...and right on cue rates on the 10y have again exceeded 2%. They said the meeting was to discuss increases in the advance and overnight rates...never mentioned fed funds though. I do believe the likelihood of a .5% rate hike rather than a .25% hike next month is now more likely though...because a larger hike buys them a bit more credibility....though why anybody still believe anything the fed creatures say is beyond me.

As far as the excuse for a smackdown, well that's usually what we see. Nearly every time the fed swamp creatures meet metals are smacked down. The only reason I think "it might be different this time" is because the latest COT reports show that the scumbag bankers have been both covering shorts on the metals and adding long positions. If you think about, there's really not much of anywhere safe for currency to go in the US...except metals. Bonds are shit and getting shittier, equities are scary due to inflation and rising rates, cash is being debased, and cryptos have been tanking too. For this reason, I think we may see a different result than usual, but who really knows what the obviously trapped and corrupt fed douchebags are going to do.

I haven't changed a thing due to the emergency meeting announcement. I think metals and miners are right at the beginning of what should prove a powerful uptrend and that's where I want to be in this environment.
 

Voodoo

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I'm betting they raise rates 0.25% here today and then 0.25% in March.
 

solarion

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When you say "raise rates", do you mean fed funds? I believe currently it's a range from 0.10 to 0.25. I'd love it if they did precisely what you say...because it'd signal to everyone that they're freaked out and likely send metals much higher...sooner, while blasting equity and bond markets.

It'd also mean that they(the fed) misled with regard to their announcement, as they never mentioned fed fund rates. ...not that the fed lying would be news, but they do need to preserve some semblance of credibility.
 

solarion

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Couldn't help but notice that even while the metals themselves were being beaten down today, a whole lot of gold and silver miners I track were actually up or flat for the day. Even though silver closed down $.51 today(-2.14%), SILJ was down only $.02(0.16%) during the regular session and is actually ahead for the day including post-market trading. It seems like the miners are beginning to decouple from the underlying commodity to some extent. Will have to consult some charts to confirm, but this is a great sign for the sector.
 

solarion

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Added a position in NGD(New Gold) yesterday on the scammy gold take down...which just happened to coincide with a PPI release that showed 100% greater than expected inflation in supply chain inputs, so in case you're wondering, NO price inflation will not be slowing anytime soon. Once more thick headed peeps finally figure out that the fed and ruling class are lying about this, there'll be a mass exodus into commodities and commodity suppliers. While gold and silver miners move late in commodity cycles, they also tend to move violently, so people should be buying in here...imo.

+4x NGD Jan20 '23 1 calls @ a cost of 0.95 apiece.

This is a long term out of favor dog....even for a small cap gold miner. Its return is -83.24% over the past 10y, though it has been on a bit of a run the past year...up a whopping 6.21%.

NOTE: Gold and silver are beginning to decouple from the broad market indexes and behave more like the safe harbors they are. No longer is it a certainty that the PMs will tank with equity and/or bond markets. This means more people are FINALLY starting to get it.
 
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solarion

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Added small positions in:

AUY(Yamana Gold) 2x Jan20'23 4 strike calls
FSM(Fortuna Silver) 2x Jan20'23 3 strike calls
KGC(Kinross Gold) 2x Jan20'23 4 strike calls

All beaten down to very low valuations. I have these at 63%, 48%, and 61% below fair value at current PM paper prices. KGC and AUY have also had solid earnings reports recently. FSM, not so much, but the selling pressure is overblown imo.
 

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I am looking at my portfolio and holes where I like something but am really under-invested. Miners have been that way for some time but going to put some cash to work soon. I own a bunch of silver but hardly any silver miners (decent sized)... Looking through the short list (they really have become scarce) but I'm liking Fesnillo and Fortuna (FSM). I see that you just bought the stock but why has it really seemed to lag lately? Well, I see a big one, they are down to only 22% Silver Revenue and really just one good sized Ag mine.

After a quick glance at the latest presentations... I really like EXK >> FSM
 
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solarion

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FSM was trading in the $7 range up until the announced merger/acquisition of Canadian gold miner Roxgold(last June?). The market immediately began punishing the company, effectively withdrawing the premium attached to primary silver mining companies. So now that it's effectively a gold miner that also has some silver production, it simply isn't seen as much of a silver play...right or wrong, so the market has seen fit to drop the shares a bit more than 50% YoY. As I still have fair value for FSM at roughly 7.30, it could double to get to fair value imo. ...and that's at current gold/silver prices.

Endeavor has also had its own problems recently, with some questionable acquisitions, lately of a Mexican silver mine from SSRM. It also isn't down nearly as much on a YoY basis as is FSM, so I'm not as attracted from a valuation perspective. Also, while both are constituents of SILJ, EXK constitutes a larger percentage of holdings(by 1.14%), so FSM to my mind = more gold exposure and less overlap than does EXK.

Another note is that insider selling in these two are polar opposites. FSM Insiders are gobbling up shares at low prices, while FSM insiders are not doing likewise.

FSM recent insider transactions:

1645484385282.png


EXK recent insider activity:

1645484457439.png


Here we are on what appears to be the next leg up in a commodities super cycle and the insiders at FSM are buying up cheap shares and the insiders at EXK are content to stand pat. Could mean nothing, but if they see nothing to get excited about, then it makes me somewhat less enthusiastic.

I don't know how much can be read into any of this stuff, but in my small managed money portfolio, I've a very heavy weighting in SILJ, and have sprinkled atop that a few junior gold miners. Also note that SILJ's largest holding AG(First Majestic) is also not a pure silver miner anymore...and I think that's a survival mechanism these silver miners have had to undergo as silver is likely just above the cost of production at these ridiculously suppressed levels. Meanwhile gold is within striking distance of its all time high.

In fact, in 2011 when gold was right where it is now...relative to US funny munny, silver was 48 bux an ounce...now it's only half that. To my mind more gold ounces to mine for silver miners = a survival mechanism in the face of grotesque price suppression of paper silver spot prices.
 

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fascinating thread solarion. first time i've read through it.

what percent return do you make over a typical year......or better, your years averaged together?

on my div drifting strategy from the other thread i did about 100 percent in 2021. the strategy is only one year old - so the only data i have

the option game sounds intriguing, but i have to think it's going to outperform my drifting for me to get in it. that's why i'm asking about the returns of a learned trader like you. do you guys regularly make 50 to 100 percent per year...or more?
 
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solarion

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Thank you. I hadn't traded in years until last March, when I wrongly thought the miners were ready to roll. At some point last year, I liquidated all my contracts and rolled with just microcap miner(stocks) and a cash position. Here we are a year later and I'm again hoping this breakout has legs, so I plowed back into SILJ just a couple weeks ago. Back in the day, I was quite good at choosing appropriate option strategies, but it's something that takes a lot of research and returns are contingent upon what you're hoping to accomplish.

If you're primarily into stocks, then options can be used to compliment your core positions by generating income using covered calls or hedging with protective puts. My return last year was all of 12% or so, because it was supposed to be about mining stock derivatives...which drifted lower all last year...again. On a good year and a wide focus I've brought in 4-5x before, but I don't have the same tolerance for wild swings I did in my younger days. :) Anyway, I'm managing a friend's mining exposure portfolio here, so I'm probably more cautious than I would be with my own funny munny.

If you think about it, synthetic stock built from options has significantly higher potential gains, merely due to leverage, though one must, of course, be aware of the risks inherent in derivatives that can expire worthless, but aside from that options have always seemed to me to be far more flexible than stocks. Not so great for stacking dividends though.

Take the core of this portfolio for instance. 16xSILJ calls that expire in Jan of 2024 plus two sold puts. The cost was (16*5.18)-4.84 = 78.04 and for that I get the relative performance of 1,335 shares of SILJ...which at the time I put the trade on would have been roughly 14.68k(11*1335). That's a discount of 6876(46.8%) for very similar performance. This allows me to diversify a bit into some junior gold miners, a gold streamer, and a uranium ETF with very little capital.
 

solarion

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Very compelling option trades in here...imo, with QYLD currently down to 19.81. A strike 19.5 Aug19'22 put sold short would raise 1.20(bid) and would entitle the purchaser on the other end of the transaction to sell to you 100 shares of QYLD @ 19.50 apiece.

Meanwhile you've already stacked 120 bucks in credit(6.15%) toward the purchase price should that happen, and if QYLD doesn't drop another 30 cents or if the purchaser of the put chooses to not exercise it, then you keep the 120 bucks. Year to date low is 19.43, so I think that collecting premiums just above that is a wise strategy. Yield should be roughly 14.75% by then as well, so it's attractive from an income standpoint...if you do end up with the shares.
 

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How do you feel about building a potential DWAC short / Rumble (CFVI) long pair trade? Thinking about getting into that as I think DWAC is vastly overvalued and will come down upon the Spac merger (and far more shares available) but Rumble is tied with them a bit and I think has far more potential, at least it has a real product that I do like.
 

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Very compelling option trades in here...imo, with QYLD currently down to 19.81. A strike 19.5 Aug19'22 put sold short would raise 1.20(bid) and would entitle the purchaser on the other end of the transaction to sell to you 100 shares of QYLD @ 19.50 apiece.

Meanwhile you've already stacked 120 bucks in credit(6.15%) toward the purchase price should that happen, and if QYLD doesn't drop another 30 cents or if the purchaser of the put chooses to not exercise it, then you keep the 120 bucks. Year to date low is 19.43, so I think that collecting premiums just above that is a wise strategy. Yield should be roughly 14.75% by then as well, so it's attractive from an income standpoint...if you do end up with the shares.

QYLD is not going to be good in a tech crash. Give it a couple weeks or at least until March I think before buying.

I see the QQQ's heading to ~$315 or $305 below that right now.
 

solarion

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Perhaps. Another 8.1% off QYLD from here would = 18.20. The yield would then be 15.55%. I certainly don't like tech here, ...and I think we're getting overdue for a bounce.

Anyway, I don't favor buying it here, I favor selling puts against it. Puts sold at 19.5 & 18.5 provide downside protection and tremendous buying opportunity if exercised. Meanwhile, you get paid to put on the trade. Best case, you sell those puts, and they never close in the money. Even if they do, there's no guarantee they'll ever be exercised. Likely the shareholder would look to collect...ONE. MOAR. DIVIDEND. first. ...by then the put may well be back out of the money. That's particularly likely on something paying 15% yeilds.

How do you feel about building a potential DWAC short / Rumble (CFVI) long pair trade? Thinking about getting into that as I think DWAC is vastly overvalued and will come down upon the Spac merger (and far more shares available) but Rumble is tied with them a bit and I think has far more potential, at least it has a real product that I do like.
I'll have to look into it. Nearly all of my research of late has gone into commodity related stuff and yield generating assets.
 

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How do you feel about building a potential DWAC short / Rumble (CFVI) long pair trade? Thinking about getting into that as I think DWAC is vastly overvalued and will come down upon the Spac merger (and far more shares available) but Rumble is tied with them a bit and I think has far more potential, at least it has a real product that I do like.
Thoughts on DWACW? I dipped a toe in at $13. Thought it would dive further. Now it’s dancing around $28
 

solarion

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Went ahead and snapped up a couple longshot calls on EXK. These are April14'22 5 strike calls for .19 apiece, a couple HL 6 strike March25'22 calls for .21 apiece, and a couple FSM April14'22 4 calls for .19 each.

Also a couple HMY(Harmony Gold) March18'22 4 calls for .27 apiece.

Just some fliers in case we see a short term pop.

Silver is right at long term resistance on daily charts. A close above this level could bring some programmed trading into the futures market on the long side.

1645562675724.png
 
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Voodoo

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Thoughts on DWACW? I dipped a toe in at $13. Thought it would dive further. Now it’s dancing around $28

As you might expect since I was looking to short DWAC it's not my favorite. There is a VERY odd pricing problem with these warrants and I can't explain it. Another possible better hedged trade would be to short DWAC and buy the warrants. I think that's what the pro's have been doing into the SPAC warrant exercises.

I did find this thread but it seems completely unresolved. I might actually buy some warrants and short some stock. Possibly buy 2 warrants for each share shorted so I would be fully covered and still have some cash left over.

https://www.reddit.com/r/WallStreetbetsELITE/comments/qdfp8p
 
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solarion

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New Gold down 11% on earnings that were in line and increased revenue. It had a nice run up ahead of earnings, so maybe it's little more than profit taking, but pending a review of their earnings call, I'm going to stack a couple more calls on weakness.


1645629755330.png


Miners clearly beginning to outperform in the silver space...with the juniors leading the way.

Silver vs SIL vs SILJ Daily 2 month performance.

1645634276492.png


Silver vs SIL vs SILJ Daily 1 month performance.

1645634402438.png


As to which metal miners' shares to stack, that too seems relatively obvious...to me.

1645635443816.png


While platinum has been a slacker over the past several years, it's making up ground very rapidly, a trend I expect to continue. The problem is, that there aren't very many good equity plays to capitalize there. As a result, I'm merely stacking lots of physical platinum, junior silver miner ETF shares, and a few select junior gold mining shares.
 
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Voodoo

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Would you guys stop buying already. Don't have my funds in place yet to snap these stocks up. :rage 1
 

solarion

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Yer slow mang! ...but don't worry, silber will most likely go back to re-test the 200d ma breakout on the daily chart. That'll be the opportunity for the slow people.

SILJ up a healthy 4.54% on the day...a clearly telegraphed breakout.

Nice pop today. The OTM HMY calls I bought yesterday popped into the money today...and the 3 HL calls I stacked briefly did so as well. These represent roughly a 50% gain from yesterday, so I'll look to liquidate or roll them forward and re-deploy the capital as opportunity presents.

OUCH. That's going to hurt in the morning...

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Edit: Unfortunately, when the professional criminal banking cartel showed up at their NY lair yesterday, they turned the above equity rout into a rally while slamming down electronic representations of real assets on the crimex. There was so much fake silver traded on the crimex JUST YESTERDAY, that in one day, volume exceeded the entire silver mining supply of 2021 by 20.24%. Literally 120.24% of a year's silver mining supply allegedly traded hands on the crimex IN A SINGLE DAY. The results of this fraud were obvious. Gold, allegedly an $8 trillion market was battered down by over 4.5% almost from the open in NY on zero news. That's the kind of wild gyrations one would expect from an OTC penny stock, not a mature market in real money.

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Given the rampant criminality and the captured regulators that refuse to do anything other than take a cut of the booty from the thieves responsible, I'm going to look to trim positions today, clearly the criminal banksters are trying to reflate their tech/big cap bubble of overpriced crap at the expense of commodity "markets".

As this is where I began building a long term SILJ position, I'm unlikely to pare it unless and until I see a valid reason to believe paper silver and therefore mining companies will see less capital inflows going forward.

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Voodoo

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Anyone else tempted to BTFD on Russia? I really think Putin is doing a good thing here. Gonna ponder that this weekend.

Also, if someone wants a small cap that I really like, look at Sabina Gold & Silver. They have their financing in place and the asset looks good. Of course its in the CCP controlled Canada but I doubt that sissy boy wants to tread that far up in the cold. Still a couple years to mining though.

Did trade some GORO for EXK in my IRA today (running low on funds so just rearraigning). Had to get GORO as DRS so don't really want that much of that stock. Trying to buy some SILJ Jan 23' calls with $15 strike so a lot more of risky play than Sol's low premium high delta buy.
 

solarion

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I am. The RSX ETF is up 10% after that nasty beating yesterday, but I'll need to see some follow through first. Otherwise it's just buying into a dead cat bounce. Another risk to consider is that your broker may ultimately be forced to liquidate your position if/when the tyrants running this failing empire forbid Amerikans from investing in Russian markets. Just something to be aware of imo.

Note also the top holdings are some of the best run commodity companies around. Lukoil(7.71%) in particular is attractive to me at these prices, as is Norilsk Nickel(6.58%), and Polymetal International(4.03%).
 

solarion

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The RSX bounce is fading a bit, now down from a 10% bounce to a 4%...which makes it look sorta dead cat like. I believe there were lamestream news reports of Russian tanks outside Kiev, so that's probably got a lot to do with it...and likely why silver suddenly turned higher and is trying to drag gold with it.

I will be all over that thing as soon as I'm convinced most of the risk is price in. Interestingly the yield is close to 10% here, so it's also an interesting income play. Were I to stack it, I may consider stacking shares/selling puts with the intent of trading options around a stock position long term to generate additional yield.

I've not sold a thing, but have some pie in the sky asks floating on things that have done well for me. The global X uranium fund calls have kicked ass the past few so I may pare that back a bit, but only at the right pricetag...and liquidity there sucks. I also have a healthy gain on some short term KGC calls that are now ITM that I'm trying to flip for a quick buck.

Then I added some super cheap flier calls on GORO(Gold Resource corp) out of Denver. Looks like they're a day late on their earnings so I think people are getting nervous and it's down a bit as a result...or because the weather sucks...who knows. Anyway it's dirt cheap so I snapped up 4xJune17'22 calls for a dime apiece.

Also stacked some TGB(Taseko mines) on weakness yesterday. I don't love it, but it is a very cheap copper/gold play here. 4xMay20'22 2 strike calls for .16 a pop. Seems like it has been recovering ever since, so it looks like a smart move, even though I mostly just got it because I did okay with it before AND the lady of the house seems to think it's a frozen yogurt play. lol
 
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Voodoo

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Russia and the RSX are gonna get wrecked for at least a couple more days here. May provide some huge opportunity but I'll let the dust settle a bit before dipping my toes in that bloody water. If they really are carrying out a long-term plan they HAD to know that SWIFT was gonna kick them out and I have a feeling they have been preparing for such a move for a long time.
 

solarion

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I advised a friend on Friday that wanted to have their broker buy them some RSX on the cheap for long term income, to wait till Monday at least and see how the political situation looks. You could sorta tell it wasn't looking great, as throughout the day Friday the big 10% bounce turned into a meager 1.36% rebound during regular trading. That spelled more pain to come to me.

Now it seems likely to take another hit, but then perhaps it'll be a decent time to wade in there. Particularly for those looking for long term income streams and have the ability to sell contracts against those shares to generate further yield.
 

solarion

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Looking to sell high and double up on harmony gold March calls that have done extremely well recently.

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FSM and HL March calls still have a bit to go before they'll be ITM. Such is the life of a gambler. lol

Edit: I instead rolled the 2xHMY March calls to August 5 calls while collecting a .15 credit on each. We'll see if it has more room to run and at a cost of .12 apiece, it's not a bad gamble.

Grabbed up 2xSAND April14'22 7 calls for .45 apiece while the underlying is inexplicably down today(-2.1%) on a suppressed gold price and the calls are temporarily pushed OTM by $0.07.
 
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Voodoo

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Noticed this on Yahoo, doesn't seem to be reflected in the RSX ETF. Biggest Russian stocks taking a 50% hit.

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I don't know how long I've had this ability but I just put in a stink bid for what I believe is Polymetal through ETrade. The symbol there and on Stockcharts however, is POYYF. Just 100 shares for shits and giggle but $600 well spent I think to see what happens. That is a 23% dividend yield from 2021 dividends. Obviously high risk.
 
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solarion

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Perhaps a snapshot taken before the Russian stock market closed? I recognize the 1st, 3rd, and 10th largest holdings of the RSX in that list. RSX is still trading and presumably the NAV is being set based upon futures. If I had any, I'd be finding out how that could be so I don't get a surprise 25% haircut when trading resumes in Russia.
 

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I took that snapshot about 10 mins before the post. Presumably that would be about a Tuesday open in Russia. I would guess that the RSX etf is behind, which is why I warned that other price was just the Forex component, and some knowledge the stocks would be down.
 

solarion

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I guess we'll see tomorrow. I'm just fence sitting watching the carnage. I have RSX currently down 27.18% @ 11.37 which is weaker than it was at open(12.49). It appears a screaming bargain, but that doesn't mean it won't get even cheaper.

SIL has also been getting bashed over the head and massively underperforming, presumably due to their POLY exposure(6%).

Not real keen on the super top heavy Wheaton position(26%) either, so I chose SILJ instead and avoided the "majors". I suppose when all the noise dissipates one could see SIL as a cheap-ish way to safely play WPM...which I like very much.
 
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