I have been investing & studying the markets for nearly 10 years and this blogging thing is all new to me so forgive me if my writing is not so structured & concrete.
This is my first ever blog and hope to continue to do this assuming people out there really care about my opinions.
I've been trading Silver (using the ETF: SLV) for over a year now and feel that I made a good directional call, however, the way to make money on these commodities is through a volatility play. It's difficult to play 3+ months contracts out using a Straddle (long put & call at the money) because the breakeven (not assuming time value & implied vol) is at least 20%+.
The key to this trade is when the cost hits around 15% to put on the trade.
Given the many, many uncertainties in the market (especially with inflation, Fed policy, global demand for commodities, european debt issues).
Well, I'm going to figure out additional ways to add more value with underline companies.
All in all, my general investment thesis, for all picks, results from my perception that the market doesn't know what it's looking at or there's an obstacle that is constraining the company whether from management, secular trends, access to capital, and ownership.
take care,
Avenge
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