If you think that the only reason the silver price came down from $49 in 2011 was because the banks hammered it with paper contracts that they will never be able to deliver, that sets up the possibility that a move back above that level is inevitable.
Which makes it interesting to think about some of the option trading possibilities. Especially because as a former equity options market maker back in my days on Wall Street, I had upside call options on GLD and SLV when the prices were soaring in 2011.
Of course this was a lot more fun on the way up than the way down. Yet I’ve never stopped thinking about it, and now I’ve assembled a quantitative model building team to figure out the best way to capture this interesting trading situation. Which to me is almost like The Big Short – Part 2.
So to meet the option modeling team, find out more about what we’re doing, and see what I personally think is one of the best episodes we’ve had of the show yet, click to watch the video now!
May 26, 2019