Sell 8 ZB contracts and buy 1 SI contract. I think a 4 to 1 ratio makes sense. I don't know the technical names for the contract but I understand what you are saying about the volatility not balancing short term. Taking the larger sized position short treasuries allows you to cover a big downswing in silver. I was talking about assured profit in an absolute sense long term but that's not really good for your health short term if you can't keep the trade in place.

The ideal situation is to be able to hold the trade until both sides of it are profitable. Which I think will happen.

He said that he thought that deleveraging would result in huge run up in Treasury prices and also a drop in the silver price. I cherry picked those results because Leman was probably the most obvious beginning point of the deleveraging. I was just trying to show what happened after Leman failed. Silver went up and Treasuries went up for two days and then bounced back. The 30 year rate is too low in ABSOLUTE TERMS right now. As I am watching this it's trading at 3.41 percent. It's pretty ridiculous.

Now that I understand the contract sizes and the aspect of short term volatility concerns I'm willing to modify the conditions to try to make the long term results a short term result that you can live with. So I think taking a 4-1 ratio of short Treasuries and long silver at this point in time makes sense.

I want you to know I'm not bashing you. Frankly, it does not take long to go broke in the futures market. Name a mistake and I have probably made it. I was just trying to get you to think about the logistics of putting the trade on. The other thing you need to think about is what you are gonna allow for margin on this trade. Just because you can hold the contract on like 15k for silver and 2k for ZB doesnt mean its a smart thing to do in a trade like this. If I were to make this trade I would hold at least 50% of the contracts price in margin to make sure I could weather adverse moves. You could see some sick SWONGS.

The thing I don't get is why you want to put this trade on as a spread (arb)? You realize it would be easier and, assuming you can trade the outrights at a profit, probably more profitable to just trade each posistion individually.

Also, no trade is ever zero risk. Spreads blowout all the time.

Lol sucker rally continues in gold and silver. Juiciest short ever on the horizon! Suckers are going to be ROASTED by the BIG MONEY waiting to SHORT THE CRAP OUT OF SILVER!

Bring it on, throw all your money at the downside, you will cover after we breach $50 and give me some more headroom.

This is like betting the Baltimore Colts and laying the 18 and a half against Joe Namath and the NY Jets in 1969...

Lol I know. I can't believe these guys are actually buying this stuff (gold and silver). It is impossible to value and is only worth what people are willing to pay for it. It doesn't even yield anything. It just sits; like a rock.


LOLOLOLOLOLOLOLOLOLOLOL TARDS GOT IT COMING!!!!!!

What is lol is the risk your willing to put on selling that call. Probably one of the dumbest things you can do.

Even though I'm a fan of PMs, these prices amaze me & this pace certainly feels unsustainable.

But if you've got cash, aren't educated/experienced enough to invest in stocks, don't have the time or desire to manage rental real estate, where else do you put $$??

Gold definitely may correct, but with what's occurred over the last few years in our monetary/debt situation, and QE3 looming, I simply cannot imagine a scenario where the U.S. dollar does not depreciate.

And cash does not yield anything, and it just sits there like a rock.

yo whats your P&L today? update pls.

the funny part is GLD still outperformed SLV today. but China is buying and everyone wants inflation protection?

Pullbacks are healthy in a long bull run. It shouldn't move in a straight line.

When did you say silver is going to $20 again?

right but u sold all your silver at the top, at least u claimed 4 months after the fact. have u found your wee wee yet?

I sold my silver yes, I am long gold though.

I bet your broker loves you.....like REALLY loves you. Have you been ironed out in fees yet?

link

I did it just for you. Go look and see what those contracts used to be selling for this summer btw.

Yeah you're totally right that is hilarious. Gold held up better than silver on a down day, like almost every down day ever.

just a healthy 9% drop in a day and a half

LOLOLOLOLOLOLOLOL GOD I LOVE SELLING CALLS TO YOU NUBS!!!!!

Send the money to me boys!

We both know with emotion like this that you're not a long-term winner.

Paint it what way you want.

yeah but as long as you were short t-bonds in equal size its all good... a pure arb!

The QE3 premium coming out. Treasuries down, metals down, equities down.

I've been pounding every uptick in gold since 8:30 this AM.

Took half off down 93.

Sweet move.

11% downswing

and when QE3, as we know QE, isn't announced?

Rolling my posistions out and just doubled my posistion at 37 OCT. 16 strike. LOL give me those premiums ladies.

Me and yowwserrs destroying like usual.

Nice trade Yowws can't believe you got that whole move in GLD. SHIP MANIES BABY.

Biggest Gold Drop Since December 2008 Sends Metal To... Week Ago Levels

if you had done it at 4-1 you would have made money. It's not really fair to declare yourself correct when I modified my opinion in a timeframe that would have allowed you to avoid the losses.