Eric Sprott's OTM Call Option play on the SLVNot exactly related with SPA, but I figured enough people listen to Eric's Friday updates on this board.
In the most recent one, he mentioned that he bought OTM call options on the SLV to get some more exposure to the price of silver going ballistic in the near future. He was saying how he sees it going to as high as $75-80 by the end of this year. Anybody else here have this trade going?
I think this has the potential of being an extremely profitable trade. I actually had something similar set up with part of my portfolio but on the SIL (Global X Silver Miners ETF). They have call options going out to Jan 2022. I bought far OTM call options on them end of June and in one month, they were up as much as 265%. I've since repositioned and got them out as far as the $75 strike for Jan 2022.
I was surprised this week that they did not go up much despite the huge increase in silver, so I also got some SLV calls as well (also far out the money $45 strike.. I got the March 2021 expiry). Now, I have 70% SIL calls and and 30% SLV calls. What do you guys think about this play?