As we all know, SLV and many other precious metals are in a melt up right now. I’m earning some option premiums on GLD but a one day rise of 9% for SLV really shook me today (basically, a little bit FOMO :)). I wonder what’s the best option strategy for a market condition like current silver’s. Higher delta CSP? CC but keep rolling if price continues to climb rapidly? Or just buy and hold?
Strategies best suitable for a melt up like SLV’s right now?
byu/Ok_Personality8193 inoptions
Posted by Ok_Personality8193
5 Comments
If you are brave enough, wait for a big red candle then sell naked short calls on SLV but small enough size so a 100%-200% premium loss doesnt hurt. Set a hard stop loss.
If you have long keep taking profit into strength.
Otherwise avoid.
If you want the highest delta, i.e. 1.0000, you buy the underlying. Avoids theta decay. No IV crush. Very clear defined risk.
Literally long calls lol
But that might be too late now.
Debit put spread LEAPs or 45DTE short call spreads. Since it is a trade against the crazy trend, we need to cap the loss here. It is overbought for sure. But it is hard to time it.
Just buy calls. You can buy them deep itm or be bolder and buy atm or otm. Either way you’re getting big leverage and you can make a great return with a relatively small amount of investment (if they continue going up). I’m holding long and short-dated Gld and Slv calls.