$1000 a year to riches in SLV options I have revised my $1000/year to riches in SLV options, so if you care to re-read my article that would be great! As my strategy gets better, so does the profit potential. I'd just like to thank Another Joe for introducing me to $45 2015 calls, as $60 is a little to far out there.
This is what I like about criticism, it helps me grow. I have $60 calls right now that I will sell as soon as I can get a modest profit, and I"ll use that to hedge my position as I'm going a little more than $1000/year, more like $5000/year.
This strategy is for the long term, I think its WAY better than doing weeklies/monthlies, it really beats trying to catch smaller moves because with the 2015 calls the profit potential is still HUGE and not nearly as stressful... Ok here it goes, please give me your thoughts on the changes/article in general.
Invest $1000/year to Riches in SLV Options
From a technical/fundamental perspective, the general conclusion seems to be that silver and gold have not seen the fullest potential. Silver will see $60/ounce at minimum within the next 5 years. The all time high of $50/ounce was made in 1980 and I think it unlikely that we will only break this record by $10 in our next parabolic run. My focus on this move has been to achieve maximum gain for minimal investment. The strategy I'm about to present to you is an opportunity to become wealthy even if you live in moms basement working part time at 7/11.
This is the name of the game... You have to dedicate $1000/year into $45 calls ( no more/no less). This is now your new and separate trading account for this specific play. In the event of the parabolic rally your profits will be used to catch the inevitable sell off that comes with the nature of parabolic rises in SLV. As of now you can buy options that do not expire until 2015 at the $45 strike for 30 cents at $23.00 SLV, when we blow past $60 to $80 those same calls have the potential to be worth 6000-8000% . From $23.00 SLV , if we go to $35 ( top of the multi year trading range) by October 2013 you will be up roughly 600%, that is enough to pull your principle and let the profits run!
We are at $60-$80/ounce... Now what!?
You then use what your prepared to lose. Layer into put options as soon as you see technical weakness . You don't need to do shorter term puts, go out about 6 months to a year at the $50-60 strike, they should be worth pennies if we go to $80. Even if we spike another $10 or so, it doesn't matter, especially if your going to ladder in. These massive and instantaneous declines should give you a 30-50x return safely. How you trade these moves will be completely up to your own risk tolerance, but be rest assured you can safely come out with 6 figures from this next parabolic rise/crash in silver.
Here is where things get interesting, if you are spending $1000/year, you will not just be making 600-8000% of $1000, it will be on $2000 in the second year, a rise to $60/ounce should leave you with at least $120 000 to layer in put options to catch that 50x trade on the way back down. Designate half of your theoretical profits to a 50x trade and that will be roughly 3 million dollars with $60 000 in cash sitting in your safe; all from $1000 investment year over year.
A question you may ask is, "what if you purchase these calls now and we move to $10? ". The good thing about these calls is you are investing minimal amounts of cash, $1000 should be a number that you are fully prepared to lose. Also take into consideration, a parabolic rise to $80 could happen in as little as 3 months from $20. The main thing here is that you are in the game, and you don't have to worry about missing that big move. I hope you enjoyed my article and I'm fully prepared/encourage criticism and alternative strategies. Lets get rich together!