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

Voodoo

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PLAY is a fantastic looking chart to short. How to play....:ponder:

I like the month that you picked for the time frame - July options look good. Low volatility so they are rather cheap but I don't want to have written a naked call at $50.

So I'm looking at selling the $50 call and buying the $55 call and then adding a $35 put option. Small net debit - ok executed at $0.35. We'll see how this goes.
 
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solarion

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Just reminiscing on "options strategies" explained to me during the dot-coms...

The "winning strategies" appeared to be buying Puts & Calls, and then selling Puts & Calls... But I never figured out how that worked - just like I've never figured out how BitCoin works...

I was into "technical chart trading" - watching the chart movements... and had some little success. I didn't do "fundamental analysis" on anything.
But in today's non-sensical ultra-rigged-instant-algorythm-trading, I would just stay away from the "Casino"...
An iron condor has two short positions and two long positions. The objective here is to capture premium by strategically placing your buys/sells so that the underlying stays within your two shorts. It's profitable roughly 66% of the time, but even when not profitable losses tend to be small if managed properly. It's a near sure thing when done correctly, but it bores some that are looking for the "big score" since gains are capped...as are losses.

1618511058090.png


BTW, these condors slapped onto a stock the day before earnings can be massively profitable because the market makers puff up at-the-money premiums heading into earnings day. That is what I've built with EH detailed below. Two short positions, one on each side surrounded by protective long positions on each side = iron condor. When earnings are announced the premiums will get melty...particularly right at-the-money...which I've shorted.

PLAY is a fantastic looking chart to short. How to play....:ponder:

I like the month that you picked for the time frame - July options look good. Low volatility so they are rather cheap but I don't want to have written a naked call at $50.

So I'm looking at selling the $50 call and buying the $55 call and then adding a $35 put option. Small net debit - ok executed at $0.35. We'll see how this goes.
Yep. PLAY could get really melty anytime...that chart looks very bearish. I'm long two JUL40 puts and short a single MAY43 put. While it may sound counterintuitive to be long a put with a lower strike than a short put, the MAY43 put I'm short is mostly to balance out theta decay and to make the trade cheaper. On any strength in the underlying, I'll sell short a NTM call...probably MAY and then I'll have a melty near term short strangle + 2 nekkid longer term puts. This will then be theta positive and relatively cheap. For now my position is thus:

1618510988990.png


Get a load of these INSANE time premiums the market makers are building into the ATM EH(Ehang) contracts. Insane! I will be capture those premiums. lol Earnings tomorrow.

1618511461521.png


Think about it. Those things expire in 26 hours and they're getting > 1300% time premiums. Yes, I will sell you that! ;)

Edit: EH has been a short term trader's dream. The thing is all over the place ahead of earnings tomorrow. My final position heading into tomorrow looks like such.

1618514646719.png


It doesn't have all the credits I've stacked in the chart, but whatevs. Bottom line is, I'm short a 25 strike call for 4.40 and short a 30 strike put for 2.15, so I've stacked 6.55 in credits while spending 2.10 building positions around those shorts to protect against/benefit from large moves tomorrow...so net 4.45. As it's both options expiration AND earnings for the underlying, I doubt this thing holds still...which is just about the only way I give back much of any of the credits I've stacked.

Frankly I think a large move to the upside is most likely, so I've focused more on the call side, but we will see. That call I sold short was smack dab at the top of a large move up that barely failed to break above resistance.
 
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Voodoo

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Now here's a stock that I have also shorted and is a more immediate candidate. Terrible earnings and bad last report. Basically the only hope it has is free infrastructure money from Biden. Might be some option plays here as well, lots of new investors buying ST calls on this.

View attachment 206517

Did someone mention melting?

1618515818608.png
 

dacrunch

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Now my head has become too "fuzzy" for all that "mumbo-jumbo", hahaha!

Best of luck to those who can "stay on top of the game"!

(I can remember checking over the phone on my calls & puts every hour.... and even from DisneyLand on vacation with the family - where in one phone call I made a $15k profit selling "out-of-the-money" Dell calls.... Yeah, I was "gambling"...)
 

solarion

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I realize the WSB guys on reddit love this thing...but damn. That's a short.

1618528351502.png
 

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solarion

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2 AUG short straddles + 2 pair of NOV long calls. 1.1 + 690 margin. 3.731 deltas and +0.007 theta. ;)

1618541617215.png


These guys are re-structuring and dealing with some legal issues, but very very cheap for the massive resources they control.

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Not something I want to pay a whole lot to hold onto...or have getting melty with negative theta options, but that's proven reserves of gold worth 20,967,800,000(21b)@$1762 and silver worth 12,441,000,000,000(12.4t)@$26. With a market cap of 222.83m.
 

Voodoo

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I realize the WSB guys on reddit love this thing...but damn. That's a short.

View attachment 207668

Not yet, but i would agree. Sometimes the earnings dont tell the whole story but AMC is in trouble. Just the other day they announced they are asking for a vote to double the number of shares available to issue. Some of the youtube guys were teying to spin this as not bad because the ceo promises not to issue them this year.
 

solarion

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Fuel cells just aren't the technology of the future. I'd go short, but for the Biden Bid.
Not on a large scale. On larger scales they'll likely go with fission reactors to avoid those "evil" fossil fuels. One thing that definitely isn't viable large scale is "renewables". Even if huge swaths of land were sacrificed to stuff solar panels and eyesore bird murdering wind turbines as far as they eye could see...STILL a real power plant is required as those things have a duty cycle < 30% in most areas.

I'm stacking uranium providers. A bit at a time for now...and a lot faster later. There is no free lunch in power generation and ultimately the more dense the energy source the more efficient.
Not yet, but i would agree. Sometimes the earnings dont tell the whole story but AMC is in trouble. Just the other day they announced they are asking for a vote to double the number of shares available to issue. Some of the youtube guys were teying to spin this as not bad because the ceo promises not to issue them this year.
It's just bad news followed by more bad news for some of these companies. ...and while it's convenient to blame it on beer flu, most of these business models that are struggling in a post scamdemic world, were really doing so pre-wuflu as well.

This could get very interesting...

I may be very glad I shifted this position to net long. ;)

1618571350217.png
 
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Voodoo

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The short play on PLAY is starting to look pretty good. Down over $1 today and at the ~50 day MA.

Not really an option idea but you guys should look at HGEN. They keep coming out with good news and the stock has been sold off. No earnings yet but did a small secondary at $18.50 and shorts have been pounding this stock. I bought another 350 shares today.
 

Voodoo

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Play has had a bit of a wild day today. They surprised and annouced better than expected revenue but it looks like the virus "comeback" has taken over. It's down over $3 from just 30 mins ago. Big candle just touched the MA. And now we are below the 54 dMA. Short play is looking good.

1618928755564.png
 

Voodoo

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Walt Disney is another stock and chart that looks like a real tempting short. Just broke the 50 dMA and have a cross from the 18 dropping below the 54. Clearly declining RSI momentum as well.

1618930325748.png
 

solarion

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The short play on PLAY is starting to look pretty good. Down over $1 today and at the ~50 day MA.

Not really an option idea but you guys should look at HGEN. They keep coming out with good news and the stock has been sold off. No earnings yet but did a small secondary at $18.50 and shorts have been pounding this stock. I bought another 350 shares today.
Yeah, I put on a new PLAY short position on strength today. Looks like a bounce off long term support to me and isn't likely to hold up for long. You asked me once how I keep track of all these complex positions, and the reality is that it was getting cumbersome. Seemingly small mistakes with option trades can be rather expensive, so I've been working on a way to address the issue. What I've come up with has been fantastic so far. I'm running a real time API from barcharts into Excel(spreadsheet) to update all these positions in real-time. This has proven very valuable as I'm able to instantly identify hugely undervalued contracts on the spreadsheet relative to quotes from my broker.

Plus it calculates in real time all the greeks on all my complex positions. Ideally I like to have 2+ calls, 1 short call, and 1 short put on each long position. This provides positive theta at the expense of up front gamma and a reduction in delta. On the other hand it makes these positions able to be adjusted favorably irrespective of the movement of the underlying. On down days I can, for instance, cover a shorted call or sell a put profitably. Then on up days I can sell a call or cover a shorted put. It's really an extraordinarily flexible way to increase/decrease leverage profitably over time.

Here's a pic of the spreadsheet in its current form and the position I slapped on PLAY. As you can see I'm still Theta negative on this position...which is something easily addressed by selling a "melty" put. This won't have a margin impact, but would cut negative deltas(bad), raise Thetas(good), and redeem some credit for the position(good). I will wait for a significant down day to apply this position as a put will sell for significantly more on such an occasion.

1619025406326.png


1619025673418.png
 

Voodoo

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The short play on PLAY is starting to look pretty good. Down over $1 today and at the ~50 day MA.

Not really an option idea but you guys should look at HGEN. They keep coming out with good news and the stock has been sold off. No earnings yet but did a small secondary at $18.50 and shorts have been pounding this stock. I bought another 350 shares today.

Nice rebound today on HGEN. I'm telling you this is going to rip. It should already be in the $40 range. Perhaps they raised money a little too early but I've Never seen a chart like this. You can draw a support line between the two sides and not touch a single candle. Weird.

1619041350061.png
 

solarion

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Nice. I track HGEN, but I'm focused almost entirely on value plays in the commodity sector. I track HGEN because it is roughly 45% undervalued based on my research. Many of these assets will increase in dollar terms, but will be unable to outrun inflationary forces. This is why I think it's important to focus on the commodity suppliers.

I added a position in SBSW(Sibanye-Stillwater) on weakness today. Long a pair of JUL22.5 calls and short a JUN20 put. Somewhat risky given that their earnings come out after the bell, but I like the odds. This is the #3 producer of platinum in the world, a huge producer of rhodium, palladium, gold, silver, etc. Very well managed and has grown like a weed, yet is roughly 50% undervalued here, mostly due to perceived jurisdictional risk(Africa).

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1619117712492.png


To my own way of thinking, this is the right way to play the potential hydrogen fuel cell adoption. SBSW mines the resources necessary to make fuel cells a reality, and rather than being based on fluff, their share price is based on physical metal extracted from the Earth.

 
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Voodoo

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Did they buy the recyling PGM business from the old PAL, what was their name, North American Palladium? Man that stock was a disaster.

An Iridium Black membrane or catalyst, interesting, guess it's been awhile since I was in the industry.
 
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solarion

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Sibanye is a spin off from GFI(Gold Fields)...which I also like and have exposure to. This was done when the three PGM mines associated with GFI + stillwater were unprofitable due to depressed PGM prices. Since that time the child has outgrown the parent...where Sibanye-stillwater has expanded to roughly twice the size of their parent GFI. The CEO of SBSW, Neal Froneman, has shrewdly acquired PGM mining assets, such as Lonmin, when they were cheap and has turned them profitable over the years to make the company #1 in world rhodium production, #1 in iridium production, and #3 in platinum production...along with some remaining contingent of gold. The top two pure play platinum producers are not option-able, but overall I'd say SBSW is the best run of the three companies anyway, so I was happy to take a position after some weakness in the overall market.

Then to add exposure to gold, SBSW went ahead and took a 50.1% stake in DRD Gold Limited which was completed in 2018. It's really a very well run company, with the CEO making mention over the years of acquiring nearby gold mining interests to form one huge gold/PGM mining contingent by merging back in with GFI and obtaining Anglo-Ashanti gold. While this may never happen, it would in fact create a company nearly the size of the top gold dog...Barrick.

Fascinating video on SBSW's resources and output...


The greatest risk I can see is that rhodium should pull back, but frankly with all the dollar printing I'm not too worried. Anyway iridium, platinum, and palladium having been moving up and will likely take up the slack in profits if there is a pullback there.
 

solarion

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Dave & Busters apparently sees revenue higher for Q1 of 2021. Now a whopping 252 - 257m. Wow. Except estimates were already 243m. So while revenue will look good YoY...because they were shut down the prior year, they're still bleeding cash profusely and not expected to stop the losses until at least 2022...which I doubt happens. No doubt they're also printing up even more shares currently to further lower losses per share.

Intel has been getting hammered...so I'm taking profits on the puts I have there and will look to put those resources to work elsewhere. Likely more long plays in the commodity sector. I like DRD, LODE, NGD, IAG, GPL, GORO, TGB and assorted other small cap gold miners that are hugely beaten down. Also added a small position in GATO(Gatos silver), as I believe it represents a somewhat better value than most of the other primary silver miners.

I've increased leverage on SILJ to 4.2 deltas...the equivalent of 420 shares...at a cost of 476 fiats. This thing feels about to blow...the constant suppression cannot last forever.

1619196175936.png


The low gamma means it reacts slowly to changes in the underlying, but it gets there, and frankly sacrificing a bit of gamma for positive theta is a great trade off imo. Not bad for exposure comparable to 420*15.75 = 6615 fiats. Excluding margin requirements on the two puts sold short(818), the leverage is nearly 14:1.

Slapped another July 40 put on PLAY while it spiked up for no apparent reason today too. Currently @ -1.2 deltas on that turd.

LOMA is an aggregate manufacturer located in Buenos Aires. Very well run, very stable, and roughly 52% undervalued. Most buy it for the dividend, which is dispensed like clockwork, but I trade it opposite the dividend cycle for maximum benefit, taking a position on a very reliable trendline.

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solarion

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Here's a bizarre "opportunity"? I've spent a couple hours researching this company's brief and checkered history since discovering it in a stock screener this morning. Literally the one and only company to appear with the rigorous parameters I entered into the screener. The company...is TRIT(Triterras, Inc). A formerly private company brought public via the shady SPAC process. Never have I seen such a tremendous value in a growth stock...it all seemed too good to be true, so I dug deeper. Apparently there are numerous allegations, and a class action alleging false and misleading statements from company execs. When the company addressed these issues they also announced a $50m share buyback program.

Bottom line is, this company's cheap shares could potentially be caught in a short squeeze, so rather than walk away, which is likely the prudent course, I'm instead going to take up a neutral long position by stacking a couple AUG10 calls and short selling a JUN7.5 put. Giving me a small net credit, a few hundred in margin impact, 1.023 deltas and a balanced theta. If it goes up between now and mid May, when the company is due to report again, then great...and if not, I probably sell ahead of that anyway, as I don't have a great deal of trust. The thing is really really beaten down though and allegedly have huge growth potential...if the company's story turns out to be true.

1619305004216.png



I'd not be surprised in the least to see a bounce in the US dollar index this upcoming trading week. Should that take shape, I'll be picking up naked puts on multiple positions, beginning with MAY expiry contracts that I've profits on. This will be, imo, a dead cat type of bounce, but as long as those lacking critical thinking skills believe the DXY represents US dollar buying power, they're going to punish commodities based upon that bogus reading. There's no fighting stupid, just be aware of it and roll with it. I'll simply wait to re-apply those naked puts on later expirations till after the so called "dollar strength" subsides.
 
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solarion

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GATO silver up 8.37% 8.57% currently on zero news. In fact a bunch of mining shares are up pretty good this morning even while Au, Ag, and Pt were negative to very slightly positive. Even discounting the fact that I'm employing leverage, I'm sitting on a 4.4% gain in a basket of these things at this point today while the metals are barely moving. While some portion of that strength may be attributed to M&A speculation(Fortuna bought out Rox gold this morning), I doubt that's the only factor at work here. Instead it appears to me the mining shares are beginning to move without the commodities.

Certainly if one is seeking value plays in this overvalued stock market, there's no better place to look than the beaten down commodity miners. Some of these things are trading at huge discounts to the broader market. Now here's yet another primary silver miner snagging an undervalued small cap gold mining interest. This story has repeated over and over and doesn't end anytime soon imo.

Edit: The selling in FSM seems a bit overdone imo. Yeah they overpaid a bit @ 42%, but it was a good move and should be additive sooner rather than later. I believe I'm going to lowball bid some SEP7 calls and see if I can snipe a bargain with FSM down 15% on the news.

Done. Long a couple SEP7 calls @ .95 and short a pair of JUN7 puts @ .90. I only meant to short one put...oops. ;)

That's 2.177 deltas and +0.004 theta lined up for a potential bounce back.
 
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Voodoo

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Martin Armstong seems to be calling for a pretty big turning point next week / May in general. He seems to have called lots of potential tops this year but we just keep powering through. I'm not sure what to make of this overall. I might buy some puts on the big stocks near the end of the week depending. But we haven't reached the upper target range either so if we see a big move up this week I think that becomes more likely.

PLAY did have a decent bounce. It held the support that I posted above (~50 dMA). But this bounce doesn't have much momentum and we are testing the upper Bollinger Band today. RSI peak still significantly lower than previous two peaks. Holding that trade.
 

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FOMC meeting is coming up in 2 days
 

solarion

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Martin Armstong seems to be calling for a pretty big turning point next week / May in general. He seems to have called lots of potential tops this year but we just keep powering through. I'm not sure what to make of this overall. I might buy some puts on the big stocks near the end of the week depending. But we haven't reached the upper target range either so if we see a big move up this week I think that becomes more likely.

PLAY did have a decent bounce. It held the support that I posted above (~50 dMA). But this bounce doesn't have much momentum and we are testing the upper Bollinger Band today. RSI peak still significantly lower than previous two peaks. Holding that trade.
I'm not entirely sure why you play with the fire you play with, but good luck with that.

The grotesquely undervalued portion of the equity markets are commodity companies. Suggest you buy a whole bunch of them before the masses descend upon them. Yes the market is horribly overvalued, but commodity companies are not, they're instead ridiculously cheap by nearly any metric...particularly small cap gold mining companies. Now they're also being snapped up by bigger fish. I had Rox gold at roughly 54% undervalued and a primary silver miner that I had at roughly 2% undervalued just paid 142% for that company. To me, this is validation of my model. The fact that I'm sitting on a basket of small cap gold miners doesn't hurt my feelings much either. They're up 5% ATM today...while gold is up 0.06%. Yes please. I'm a value seeker at heart anyway, and to be able to stack these things in a wildly inflationary environment seems like bonus time.

I'd not be the least bit surprised to see a bunch of these small cap gold miners snapped up by big cap gold miners(Barrick, Newmont, etc), streamers(Franco, Wheaton, Royal, etc), or primary silver miners just looking to leverage their premium share prices. It's frankly a brilliant move and it's what the smarter CEOs at primary silver miners have been doing for some while...look at First Majestic for instance. That thing is wildly overvalued...for now, yet I believe the CEO did the right thing.

Hycroft is sitting on trillions of dollars of metal in the Earth even at today's suppressed prices. They're barely mining it due to lack of capital, and their shares are < 4 bucks. Tell me nobody with a bloated share price is thinking that looks tasty.
FOMC meeting is coming up in 2 days
Great. Hope a comet hits the building while they're all gathered together. It's for the best afterall.

Edit: Taseko mines is now up 8.65% on apparently nothing at all. There's a tremendous rotation going on here under the surface from overvalued crap to value commodity plays. Taseko is a primary copper/gold producer. I have it at roughly 68% undervalued and so have almost 3 deltas of leverage. I've no trouble at all seeing a bigger fish eating this thing up.
 
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Voodoo

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Here's a bizarre "opportunity"? I've spent a couple hours researching this company's brief and checkered history since discovering it in a stock screener this morning. Literally the one and only company to appear with the rigorous parameters I entered into the screener. The company...is TRIT(Triterras, Inc). A formerly private company brought public via the shady SPAC process. Never have I seen such a tremendous value in a growth stock...it all seemed too good to be true, so I dug deeper. Apparently there are numerous allegations, and a class action alleging false and misleading statements from company execs. When the company addressed these issues they also announced a $50m share buyback program.

Bottom line is, this company's cheap shares could potentially be caught in a short squeeze, so rather than walk away, which is likely the prudent course, I'm instead going to take up a neutral long position by stacking a couple AUG10 calls and short selling a JUN7.5 put. Giving me a small net credit, a few hundred in margin impact, 1.023 deltas and a balanced theta. If it goes up between now and mid May, when the company is due to report again, then great...and if not, I probably sell ahead of that anyway, as I don't have a great deal of trust. The thing is really really beaten down though and allegedly have huge growth potential...if the company's story turns out to be true.

View attachment 208556


I'd not be surprised in the least to see a bounce in the US dollar index this upcoming trading week. Should that take shape, I'll be picking up naked puts on multiple positions, beginning with MAY expiry contracts that I've profits on. This will be, imo, a dead cat type of bounce, but as long as those lacking critical thinking skills believe the DXY represents US dollar buying power, they're going to punish commodities based upon that bogus reading. There's no fighting stupid, just be aware of it and roll with it. I'll simply wait to re-apply those naked puts on later expirations till after the so called "dollar strength" subsides.

The whole SPAC process seems like a good conversation. I really don't think it's all that shaddy but you have to do some DD because there are some crap deals where people are just trying to jump on the train. However, I think it's far more likely that Wall Street is really doing everything in their power to get rid of this SPAC process. Because it takes away a HUGE cash cow with IPO's, where everyone cashes in by selling at the absolute peak to the public. That's shaddy as hell. So I think they are spreading FUD and also shorting the hell out of some of these SPAC's. I do own a couple in GHVI and VGAC. I think the Matterport deal will be a real nice buy long term.
 

Voodoo

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I'm not entirely sure why you play with the fire you play with, but good luck with that.

The grotesquely undervalued portion of the equity markets are commodity companies. Suggest you buy a whole bunch of them before the masses descend upon them. Yes the market is horribly overvalued, but commodity companies are not, they're instead ridiculously cheap by nearly any metric...particularly small cap gold mining companies. Now they're also being snapped up by bigger fish. I had Rox gold at roughly 54% undervalued and a primary silver miner that I had at roughly 2% undervalued just paid 142% for that company. To me, this is validation of my model. The fact that I'm sitting on a basket of small cap gold miners doesn't hurt my feelings much either. They're up 5% ATM today...while gold is up 0.06%. Yes please. I'm a value seeker at heart anyway, and to be able to stack these things in a wildly inflationary environment seems like bonus time.

I'd not be the least bit surprised to see a bunch of these small cap gold miners snapped up by big cap gold miners(Barrick, Newmont, etc), streamers(Franco, Wheaton, Royal, etc), or primary silver miners just looking to leverage their premium share prices. It's frankly a brilliant move and it's what the smarter CEOs at primary silver miners have been doing for some while...look at First Majestic for instance. That thing is wildly overvalued...for now, yet I believe the CEO did the right thing.

Great. Hope a comet hits the building while they're all gathered together. It's for the best afterall.

Is it really playing with fire to own some Gamma? Not really, especially if volatility is going up. Also, if you don't hold the trade for more than a few days you aren't risking that much. I do tend to let the losers run too long and not cut bait.
 

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It really depends on what the gamma is attached to right? I'd love to short the shit out of the nascrap 100, the bloated dow junk, AND the overvalued SPY. Yet the fed and treasury keep printing fiats, dumping fiats in the laps of peasants, and forcing those peasants further and further down the risk curve. In nominal dollar terms the Amerikans that invest are sitting on huge piles of fiats thanks to their idiotic stimulus crap. The scumbag PTB know precisely what they're doing...they're forcing the markets higher with their manipulations...just as they're intentionally spiking inflation KNOWING they've no way to contain it. Irresponsible, stupid, predatory, criminal...but it's still happening right in front of our eyes.

If fed/treasury had even a concept of how to help the Amerikan people, they'd simply have exempted Amerikans from taxes completely for 2020 & 2021. While that sounds expensive, it'd actually have cost LESS than the stupid stimulus bills AND helped 1000x more. They only take in roughly $3.5t a year in stolen tax "money" after all.

I ain't fighting with them, I'd rather be long that which will benefit from their completely corrupt insanity. ...that's commodity producers.

On the other hand AMC is having a nice run up...apparently on "news" that Vin Diesel likes movies. Wow that's amazing value there. Trying real hard not to get short this piece of garbage.
 
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Voodoo

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You'll get a good chance to get short AMC. But you need to wait for it to A.) surge and B.) most of the small retail guys get tired / out. The problem is that we don't know just how FUBARed markets are because of naked shorting and other games. How many shares really exist?
 

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The retail ding-dongs are the reason I'm not short already. I don't short gamestop even though it's clearly a failing company because it's horribly expensive, as in a large portion of a portfolio to do so, but that doesn't apply to AMC. I go out of my way to find underlying assets < 30ish to go long and short because they're cheap to dabble in.

One thing I do not do is attempt to fight momentum. If stupid people want to keep stacking AMC shares because of reasons then more power to them, I can wait. ...or perhaps I never short it, even though it's clearly dying. In an environment where the fed is pulling trillions from their behinds every other day, short positions are dangerous. Unless the shorts are glaringly obvious(like PLAY), I rather be long value plays for the most part.

Bitcoin is having a field day today...as are platinum futures traders. ...even while gold and silver are barely moving...as usual. Lithium and copper producers are also having a terrific day. I've leveraged positions in all of these.

Paper platinum and paper gold are now separated by a 22% chasm YTD. Platinum is up over 16% while gold is inexplicably down 6%...on nothing other than pure market rigging. Whatever, it's making the gold miners crazy cheap. So cheap, that even silver miners can't ignore the opportunity to buy them out with their own shares as currency.

Edit: Stacked another FSM call right before market close for .90 to average down. Down nearly 18% at one point seems likely to lead to some seller's remorse, perhaps as soon as tomorrow. So now I've 2.75 deltas and a neutral theta. Oddly, I don't particularly love fortuna, this is just a short-medium term trading opportunity to my mind.

1619470397641.png


Bank of America crooks warning about inflation concerns... Wow, thanks geniuses.

 
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Voodoo

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Hehe, how often do you see a company do this after announcing it sold 3.5 million shares and raised $551 million bucks? This is not normal, this is manipulation getting called out and it's potentially explosive.

1619471708939.png
 

solarion

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...and it's a lovely gambling stock. I wish GME shareholders all the best. ...bunch of crazy bastids. lol
 

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It's personal now. Well it was personal to me as they have long beaten up on many of the poor stocks I choose. Payback's a bitch. And that's where these assholes miscalculated. The Readdit crowd didn't care about losing money.

This is bigger than just making some money, and I've already banked more on GME than any stock ever, this is about fixing a WHOLLY broken and corrupt system.
 
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solarion

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I admired the spirit, but crashing the crimex has a far greater chance of changing things in a meaningful way. With any paper asset they'll simply change the rules and/or print up more paper. They bailed out their pet hedge fund and already pretended to do something about robin hood's disgusting behavior. It's amazing people still use that garbage platform after the way they screwed over their own clients.
 

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Just think of the amount of money they could/have stolen via Naked Short Selling companies. I would throw a random WAG that it's orders of magnitude more than profits from shorting silver. They only short PM's to make their game, of printing money, not look like it causes prices to rise.

But shorting small companies, often with potentially game changing tech, gives them huge unlimited profits and allows them to destroy any competition that isn't in the club.
 

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Someone point out a flaw in my logic here.

The May 7th 25.50 call on slv is 10 cents.

I only have to pay for 50 shares of SLV with my own money, and I can get the other 50 on margin, enough for a contract, and pay 2.5% interest on what I borrow.


SLV is at 24.22 right now. So I only need $1211 of my own cash to sell an option and I can collect $10. Annualized that is a very large percentage considering that’s a weekly call.

only downside is if SLV crashes about 38% it would trigger a margin call. I just don’t see it collapsing from around the current price of the mid 20s.
 
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Voodoo

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Just think of the amount of money they could/have stolen via Naked Short Selling companies. I would throw a random WAG that it's orders of magnitude more than profits from shorting silver. They only short PM's to make their game, of printing money, not look like it causes prices to rise.

But shorting small companies, often with potentially game changing tech, gives them huge unlimited profits and allows them to destroy any competition that isn't in the club.

I posted this in the other thread as well but this is important. This Austin guy has figured out how they have been stealing Trillions, for a long time, and he's a little pissed off.

 

Voodoo

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Someone point out a flaw in my logic here.

The May 7th 25.50 call on slv is 10 cents.

I only have to pay for 50 shares of SLV with my own money, and I can get the other 50 on margin, enough for a contract, and pay 2.5% interest on what I borrow.


SLV is at 24.22 right now. So I only need $1211 of my own cash to sell an option and I can collect $10. Annualized that is a very large percentage considering that’s a weekly call.

only downside is if SLV crashes about 38% it would trigger a margin call. I just don’t see it collapsing from around the current price of the mid 20s.

I don't love the product or the timing. Wait until you have a full 100 shares to write a covered call. And I would pick an option with more time premium.
 

Mujahideen

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I don't love the product or the timing. Wait until you have a full 100 shares to write a covered call. And I would pick an option with more time premium.

i’m trying to stick with commodities that I understand. I know SLV and gld are are fraud but I only need them to track the price, I trust that they can do that.

as far as margin, I believe if we aren’t utilizing the ridiculously low interest then we are missing an opportunity. These low rates should in theory drive commodity prices up.

I just don’t see SLV dropping to $17 or lower anytime soon

I might buy a put.
 
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Voodoo

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Buying a put would be betting on it going down. You could possibly sell a cash-secured put. I still think we could see a down turn in miners and PM's to a lessor extent as the USD rallies near term.
 

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Miners looking weak today, CDE with terrible looking earnings. CAT with a huge potential bearish reversal.

PLAY is amazing in that it takes little volume to move that thing around. It opened up almost $4 on good earnings by Cheesecake factory and is now down.
 

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I am looking a little closer at PLAY just cause I have some time. They seem to have been run pretty well and had been paying a dividend. But they did the typical thing and had a decent amount of debt. They panicked and sold a bunch of new shares at pretty much the worst time in April last year. 9.5 million shares at 10.44 (ouch). And then in October were able to pry some money out of the bond markets. $500 million dollars of 5 year notes at ... hmm they didn't bother listing an interest rate.

Found here - bonds priced at a yield of 7.625%

They are now at $12 million in cash and $610 million in LT Debt. Not great.
 
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