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Silver is a big product and futures are not available on Robinhood and some of other platforms traders use on WSB. We will see what happens in the morning when NY opens.
Good Break Down Of the Institutional BagHolder Strategy that has been one of their Bread and Butter profit centers since the beginning of trading.
also... WSB (Wall Street Bets Reddit Group) has a number of posts NOT agreeing with or supporting the SLV squeeze... This is because a large number of the WSB group do NOT want to dilute their buying firepower which helps them to stay long GME and other over shorted stocks they have targeted.
I think many WSBs are aiming for a target of 1000 on GME?
GME already hit 500+ over night a few days ago... but i am not sure now if the short interest has declined since then after the broker BS which makes the $1000 dollar target a bit out of range now ?
This morning I sold Apr16 310.0 straddles on GME for $343, so I make profit anywhere in between -33 and +653 by April expiration. Implied vol was about 400% at the time. It seemed like free money just sitting there for the taking. I wanted to do this trade last week, which would have been an even better trade, but IB wouldn't allow it until today.
And thanks for the run-up in silver, I've been long PAAS since last spring as an inflation trade. I don't see SLV or any other silver ETFs being able to run up like GME. The CME can raise margin reqs on silver futures, which would curtail buying of the underlying commodity. Plus, the ETFs can issue new shares willy nilly if they need to so there's practically an unlimited supply of shares that can be made available.
I would think there's no way the price goes above 653. Of course, at beginning at January I would have said "no way GME goes above 100" and yet here we are.
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Only other time I have ever seen the premium on straddle be greater than the strike of the straddle is in the power markets. Be interesting to know how IB Margin you on this position. They have a reputation for being very harsh on things like this.
Of course if GME does go to $653, the price of $650 calls will probably be more than you got for the straddle!
Currently, the margin for the straddle at IB amounts to 12,300 USD (expiry April 16th as in the example, Strike 250 as current price). Price of the straddle is 280 USD.
