Coupla months ago, after reading some of Devere's postings regarding silver investings, I bought a Dec 06 silver option at $9.25, for $5,250.00 from a local broker.

Today I phoned and asked how I stood. He said: "The price of Dec 06 silver is at $9.70. You've made $1,250.00, as of today."

I screamed, "Cash that sucker in !!!"

And so he did. I'll get my check in the mail not later than Monday.

This is not necessarily an indorsement of Devere's stock market strategies, but just my statement of fact.

Many thanks Devere. If you were here I'd buy you a few "cold ones", cause I'm sure as hell celebrating with some.

Cheers and hat's off to ya !!!

You're a good man, Rounder, but you probably cashed your silver option in too soon -- although a good profit is better than a loss. Still, I think silver has just today "confirmed" gold's recent new highs and has broken above the topping type wedge formation it was forming, thereby negating it. This strongly suggests that both gold and silver are about to explode. It's now up to gold to confirm silver's confirmation. If gold drops down (unlikely), then silver will probably drop too -- and you'll be a champ with your decision.

(You might want to hop back into silver, at the money -- and pocket the $1,000 or so difference. Or buy an at the money gold call now for about $4,000 -- and remove the $2,500 difference.)

I'm now in with one straight gold option call and one silver spread.

Could you please post the original link to your stock advice Devere?

I actually have all my savings in physical silver, and I've been pleased with the recent gains it's been making. Unfortunately, I haven't been able to take advantage of its volatility and I don't think I'll be cashing in anytime soon.

Could you please post the original link to your stock advice Devere?

I actually have all my savings in physical silver, and I've been pleased with the recent gains it's been making. Unfortunately, I haven't been able to take advantage of its volatility and I don't think I'll be cashing in anytime soon.

Keep all or most of your physical silver, but consider cashing in a small portion (say $1,000 to $5,000 -- depending on what's small for you -- the most you can afford to lose) and buying a long term (ten months to one year or more out) silver option or gold option in the commodity market.

Here's the thread:

http://www.vnnforum.com/showthread.php?t=26904

Coupla months ago, after reading some of Devere's postings regarding silver investings, I bought a Dec 06 silver option at $9.25, for $5,250.00 from a local broker.

Today I phoned and asked how I stood. He said: "The price of Dec 06 silver is at $9.70. You've made $1,250.00, as of today."

I screamed, "Cash that sucker in !!!"

And so he did. I'll get my check in the mail not later than Monday.

This is not necessarily an indorsement of Devere's stock market strategies, but just my statement of fact.

Many thanks Devere. If you were here I'd buy you a few "cold ones", cause I'm sure as hell celebrating with some.

Cheers and hat's off to ya !!!

Glenn,

Good job! You made some money in commodity options and you are among the few who do. Most people lose because they don't understand the concept of option and futures volatility. That means the shit goes up and down for no apparent reason and always when you least expect it.

The small option buyer always seems to get in on the deal when prices have already gone up. In my opinion you got lucky and bought high and sold a bit higher. Kudos to you for not getting greedy and selling when you made a profit.

If you are serious about investing in options I suggest looking at very long term charts, 10 years plus (you can find these easily if you dig around on the net), you want to get a feel for what are historically low prices and high prices. Look to buy call options when the market is either at multi-year lows or has recently suffered a major sell-off, not when it's already gone up.

Don't enter into the trade if option volatility is very high(like gold and silver is right now) because "volatility" means the price of the option is going to be that much higher. Also, buy call options with at least 1 year in duration. They are more expensive but give you quite a bit of breathing room should the market turn against you.

And the number one rule is don't listen to so-called "experts" and analysts because most of the time they are wrong.

Glenn,

Good job! You made some money in commodity options and you are among the few who do. Most people lose because they don't understand the concept of option and futures volatility. That means the shit goes up and down for no apparent reason and always when you least expect it.

The small option buyer always seems to get in on the deal when prices have already gone up. In my opinion you got lucky and bought high and sold a bit higher. Kudos to you for not getting greedy and selling when you made a profit.

If you are serious about investing in options I suggest looking at very long term charts, 10 years plus (you can find these easily if you dig around on the net), you want to get a feel for what are historically low prices and high prices. Look to buy call options when the market is either at multi-year lows or has recently suffered a major sell-off, not when it's already gone up.

Don't enter into the trade if option volatility is very high(like gold and silver is right now) because "volatility" means the price of the option is going to be that much higher. Also, buy call options with at least 1 year in duration. They are more expensive but give you quite a bit of breathing room should the market turn against you.

And the number one rule is don't listen to so-called "experts" and analysts because most of the time they are wrong.

Thanks for your informed advice, Steve.

Fact is, I'm a complete novice regarding the stock market. I do believe though, that the economy will collapse sometimes in the near future. Which I assume means that gold and silver will sky rocket in price. But on the other hand, I was saying the same thing 30 years ago.

I'll ponder awhile, then decide whether or not to invest again.

Thanks again, Devere.

Great news Glenn!

Very risky business, commodities and options. I dont pretend to understand it.

Years ago after reading Yggdrasil I got turned onto the Rydex fund family as it offered short funds called ursa and arktos. If you want to bet the stock market will tank-- they offer short-funds called ursa and arktos. The nice thing about a short-mutual fund-- one that inversely tracks the performance of a certain index-- is that unlike selling short in the stock market, you can only lose your investment if it goes wrong. Whereas with short selling, your losses are theoretically infinite.

Rydex also has a precious metals fund, and a declining dollar fund.

http://www.rydexfunds.com/website/fund_info_fset.cfm?home=yes

Great news Glenn!

Very risky business, commodities and options. I dont pretend to understand it.

Years ago after reading Yggdrasil I got turned onto the Rydex fund family as it offered short funds called ursa and arktos. If you want to bet the stock market will tank-- they offer short-funds called ursa and arktos. The nice thing about a short-mutual fund-- one that inversely tracks the performance of a certain index-- is that unlike selling short in the stock market, you can only lose your investment if it goes wrong. Whereas with short selling, your losses are theoretically infinite.

Rydex also has a precious metals fund, and a declining dollar fund.

http://www.rydexfunds.com/website/fund_info_fset.cfm?home=yes

I'll check it out, A.E. Thanks.

For two months, I've been checking silver prices several times per day at: www.nymex.com. It's hoovered around $9.00 per ounce, mostly a little below.
Then yesterday, it jumped to it's highest at $9.47.

In my opinion, the Iran situation is driving it up. If ZOG attacks/invades Iran, silver will rise dramatically. Perhaps even beyond the $41.00 it reached in the late 70's.

I may have made a huge mistake by getting out now. I'd make $5,000.00 in profits for every $1.00 rise in the price of silver, if I'd stayed in. It'll be interesting to see if I stepped on my peeter. Eh ??

..............
I may have made a huge mistake by getting out now. I'd make $5,000.00 in profits for every $1.00 rise in the price of silver, if I'd stayed in. It'll be interesting to see if I stepped on my peeter. Eh ??

It's not a mistake to take money off the table. Maybe save the profit and roll the dice again with the principle.

Dont forget to set aside Uncle Schmuel's cut. We dislike the oppressive and unjust income tax to the federal slavemaster, but we comply with the laws.

For two months, I've been checking silver prices several times per day at: www.nymex.com. It's hoovered around $9.00 per ounce, mostly a little below.
Then yesterday, it jumped to it's highest at $9.47.

In my opinion, the Iran situation is driving it up. If ZOG attacks/invades Iran, silver will rise dramatically. Perhaps even beyond the $41.00 it reached in the late 70's.

I may have made a huge mistake by getting out now. I'd make $5,000.00 in profits for every $1.00 rise in the price of silver, if I'd stayed in. It'll be interesting to see if I stepped on my peeter. Eh ??

Glenn,

I ain't trying to rain on your parade. I'm glad you made 1200 bucks I wish it was ten times that. All I'm saying is that Dec silver option you bought for 9.25 was selling for about 7.50 in September. And for about the past 5 years that shit has been selling for about 4 to 5 bucks and ounce.

If ZOG attacks Iran I guess silver will go up but never forget that the jew powers that be in New York have repeatedly demonstrated that they can “drive” the price of silver in any direction that they darn well please.

For anyone to invest in silver at this time is madness. The shit is damn near worthless. Silver mines go kaput all the time because they can't mine enough of the stuff to cover costs. The only reason it has any intrinsic value is because of speculators.

For you to make money in silver options at the present everything has to go wrong. ZOG attacks Iran, the Persian gulf gets stopped up, oil ceases to flow and Steve B doesn't get laid for a week!

Not gonna happen, Glenn. I could be wrong and all hells gonna break loose but not likely.

The main reason I'm telling you this is because I don't want some rookie VNNers investing their last dime in commodity options thinking they will make a killing cuz they won't! %90 of small time commodity investers wind up losing and I don't want my brothers forking over anymore money to the jews at nymex.

You're coming into this conversation late, Steve -- apparently without having read the thread that motivated Rounder to buy his December 2006 silver call. Here's the thread: http://www.vnnforum.com/showthread.php?t=26904.

Read it and then pontificate.

Actually, your advice is good -- as far as it goes. It's almost exactly the same advice I gave on December 7, 2005, when I started the above thread. Now I'll analyze your advice more specifically.

Glenn,

Good job! You made some money in commodity options and you are among the few who do. Most people lose because they don't understand the concept of option and futures volatility. That means the shit goes up and down for no apparent reason and always when you least expect it.

Yes, as I've said a number of times, it is almost impossible to predict the direction of prices SHORT TERM -- which is exactly why I recommended investing ONLY IN OPTIONS and ONLY LONG TERM OPTIONS. Why? Because LONG TERM TRENDS are actually quite predictable: They tend to continue in the direction they have been going.

The small option buyer always seems to get in on the deal when prices have already gone up. In my opinion you got lucky and bought high and sold a bit higher. Kudos to you for not getting greedy and selling when you made a profit.

True. However, when a historic bull move in gold and silver are under way, what seem to be high prices today will be seen in retrospect to be low prices tomorrow. In other words, because I am recommending speculating or investing in the long term trend ONLY OF GOLD AND SILVER, which are both in long term bull trends, and because there are also (in addition to technical chart reasons) overwhelmingly powerful FUNDAMENTAL REASONS why gold and silver are very likely to continue their upward trends, just getting on board -- even if it is apparently rather late in the game -- seems to me to be not a bad idea. Of course, anything can happen and I may be wrong in my analysis of the long term trend. That is why I have recommended to myself and others that they invest ONLY WHAT THEY CAN AFFORD TO LOSE.

(This is actually rather irritating, Steve. Because you are pontificating about the subject of a thread which you apparently haven't bothered to read, I am, in self-defense, more or less impelled to answer your criticisms in summarized versions of ideas I have more fully discussed in the thread in question. I repeat. Go read the thread and then say your piece -- preferably within the context of the thread itself.)

If you are serious about investing in options I suggest looking at very long term charts, 10 years plus (you can find these easily if you dig around on the net), you want to get a feel for what are historically low prices and high prices. Look to buy call options when the market is either at multi-year lows or has recently suffered a major sell-off, not when it's already gone up.

Actually, I do NOT recommend general commodity trading to the uninitiated public -- as you are right now doing. I ONLY have recommended investing in the long term gold and silver bull market.

Don't enter into the trade if option volatility is very high(like gold and silver is right now) because "volatility" means the price of the option is going to be that much higher.

Now, at last, you have brought up a subject I have not yet discussed in my thread. While I agree with you in general, I disagree with you in this instance. Given we are in the midst of a major bull market for gold and silver, yes, of course, the initial cost of the LONG TERM options are going to be a lot higher than they were when it looked like gold and silver were never going to go up again. Of course. HOWEVER, if you spend $5,000 on a long term silver call that would have cost you $2,000 four years ago -- or even six months ago -- and silver goes up five dollars beyond the point where you got in, your silver call will be worth $25,000, in which case your $5,000 will no longer seem like a particularly expensive investment. But, then, I have not recommended that people invest $5,000. I have recommended that people invest only what they can afford to LOSE -- and only doing exactly what I am doing.

Also, buy call options with at least 1 year in duration. They are more expensive but give you quite a bit of breathing room should the market turn against you.

True. That's why I recommended we do exactly that.

And the number one rule is don't listen to so-called "experts" and analysts because most of the time they are wrong.

Partly true. The "experts and analysts" can also be right. And, while you must ALWAYS make your OWN decisions based on your OWN analysis, the "experts" can point you in a profitable direction you might not otherwise have considered -- such as long term gold and silver options.

Hot damn Devere, silver jumped up another 12 cents since I cashed in yesterday. If I waited, I'd have made another $500.00 or more.

BTW, where on the internet do I find the daily price for Dec 06 silver ?? All I know about is www.nymex.com.

Glenn,

I ain't trying to rain on your parade. I'm glad you made 1200 bucks I wish it was ten times that. All I'm saying is that Dec silver option you bought for 9.25 was selling for about 7.50 in September. And for about the past 5 years that shit has been selling for about 4 to 5 bucks and ounce.

Silver is coming out of a 25 year bear market. What if Glenn bought the contract at $7.50, would you give him crap for that? Silver is going one direction, up.

If ZOG attacks Iran I guess silver will go up but never forget that the jew powers that be in New York have repeatedly demonstrated that they can “drive” the price of silver in any direction that they darn well please.

ZOG attacking Iran has nothing to do with silver. You're right about the jew power holding the price of silver artifically low, BUT, that control is slipping out of their kiken hands.

For anyone to invest in silver at this time is madness. The shit is damn near worthless. Silver mines go kaput all the time because they can't mine enough of the stuff to cover costs. The only reason it has any intrinsic value is because of speculators.

Worthless? You're kidding right? The most heavily used industrial precious metal is worthless? That's what ZOG wants you to think so you don't invest in it. The more people that invest in silver, the more control they lose. Read about the upcoming silver ETF and the "protests" by the Silver Users Association. Starting that ETF is going to show the world how scarce silver actually is and that's when the price is going to really climb. On a side note, read about the Silver Users Association, it oozes jew. (then tell me that silver is useless)

For you to make money in silver options at the present everything has to go wrong. ZOG attacks Iran, the Persian gulf gets stopped up, oil ceases to flow and Steve B doesn't get laid for a week!

Silver is in a long term bull market. I think that's why Devere is recommending long contracts. In a year from now, the better odds are the price will be higher. On a side note, I'd be quite amazed if the silver market moved because you didn't get any. HAHAHA. "Today marks day 27 of Steve B's dry spell. In reaction to that, silver closed today at over $72 an ounce."

The main reason I'm telling you this is because I don't want some rookie VNNers investing their last dime in commodity options thinking they will make a killing cuz they won't! %90 of small time commodity investers wind up losing and I don't want my brothers forking over anymore money to the jews at nymex.

Exactly. I would strongly recommend that anyone wanting to invest in stocks, options, whatever start with a SOLID base of physical silver. Even at today's price. It is real money, it will never be worth zero, it's private to own, buy and sell. No one can audit your bank records and see how much physical anything you have.

Final notes:
- options trading is risky. So is stock trading. In these economic times, any paper trade can become worthless or be taken away from you. Start with a physical base before branching into paper trades.

- silver and gold are both in their second leg of their bull market. Silver should offer a much better bang for the buck than gold. Investing in either is better than nothing.

- start a silver savings account. If you have a savings account, start converting the useless paper into real money. You'll also be less inclined to spend it because you'd need to sell the silver first.

- don't be deceived. Silver and gold are NOT hitting 25 year highs. Adjust today's prices for inflation. Silver and gold are still very cheap and have a ton of room to grow!

Silver is coming out of a 25 year bear market. What if Glenn bought the contract at $7.50, would you give him crap for that? Silver is going one direction, up.

ZOG attacking Iran has nothing to do with silver. You're right about the jew power holding the price of silver artifically low, BUT, that control is slipping out of their kiken hands.

Worthless? You're kidding right? The most heavily used industrial precious metal is worthless? That's what ZOG wants you to think so you don't invest in it. The more people that invest in silver, the more control they lose. Read about the upcoming silver ETF and the "protests" by the Silver Users Association. Starting that ETF is going to show the world how scarce silver actually is and that's when the price is going to really climb. On a side note, read about the Silver Users Association, it oozes jew. (then tell me that silver is useless)

Silver is in a long term bull market. I think that's why Devere is recommending long contracts. In a year from now, the better odds are the price will be higher. On a side note, I'd be quite amazed if the silver market moved because you didn't get any. HAHAHA. "Today marks day 27 of Steve B's dry spell. In reaction to that, silver closed today at over $72 an ounce."

Exactly. I would strongly recommend that anyone wanting to invest in stocks, options, whatever start with a SOLID base of physical silver. Even at today's price. It is real money, it will never be worth zero, it's private to own, buy and sell. No one can audit your bank records and see how much physical anything you have.

Final notes:
- options trading is risky. So is stock trading. In these economic times, any paper trade can become worthless or be taken away from you. Start with a physical base before branching into paper trades.

- silver and gold are both in their second leg of their bull market. Silver should offer a much better bang for the buck than gold. Investing in either is better than nothing.

- start a silver savings account. If you have a savings account, start converting the useless paper into real money. You'll also be less inclined to spend it because you'd need to sell the silver first.

- don't be deceived. Silver and gold are NOT hitting 25 year highs. Adjust today's prices for inflation. Silver and gold are still very cheap and have a ton of room to grow!

Well said, Pendit, and thanks for saying it. Saves me the time and trouble of replying to him.