2013 has been a year of milestones for SK OptionTrader thus far. We have closed our largest winning trade to date, a winner of 212.50%. We have closed over 100 winning trades, and have made over a 500% return since the beginning of our service. With our latest trade we are celebrating the milestone of having closed 120 trades closed.
SK OptionTrader recently closed a trade on Silver Wheaton; using puts to take advantage of the plummeting stock price. This particular trade pushed our overall returns since inception to a total 506%! These returns have been generated over the 3 years and 8 months that our service has been operational. This means that if one had invested $10,000 in 2009 and followed our signals, this would now have been worth approximately $60,599.55.
The recent rally in the US$ was more a product of the fall in other currencies than a strengthening of the dollar. In particular we have seen the British Pound fall dramatically in the first two months of this year and this was followed by the Japanese Yen which tumbled recently on the inflationary actions introduced by the Bank of Japan. The value of a position in the precious metals sector would have increased for those living in the UK or Japan, but for investors living in the United States the strength of the dollar has eroded the value of their holdings in the gold and silver space.
The US$ Chart:
The above chart shows the rally commencing in
SK Options Trading has recognised the changing market dynamics in the precious metals markets, and as a result we have been consistently banking profits this year. As familiar readers will be aware we have been unafraid to state our view that the bull market may be over, and now we have profited again. This time we used puts on Silver Wheaton to bank a quick 29.41% in 17 days.
We believed that Silver Wheaton would be vulnerable to a price drop, given that it is effectively leveraged to silver, and silver can be more volatile than gold in times of significant movement. As of April 8th, silver is down 4% more than gold, and during the period that we held this trade silver fell 12% more than gold. Therefore we believed Silver Wheaton fall considerably more than gold if the downward trend continued.
To take advantage of this we signalled “to buy the SLW Sep 21 '13 $25 put at $0.85”, to our subscribers.
Our friend Taki Tsaklanos sent us this article recently which we hope that you will find of interest.
Gold stabilized today in global trading in Asia, Europe and the US. It has been trading near $1,550 an ounce / €1,250 an ounce. After two successive days of what seemed to be a mechanical sell off in both gold and silver, a very significant support level has been reached. Time will tell if this support area for gold (between $1,515 and $1,550 an ounce) will hold. As for now, enough buyers have appeared to pick up the yellow metal at these prices.
In the midst of this gold price drop, Société Générale published a “special report” titled “The End Of The Gold Era.”
Natural resource investors have experienced a tough year. The price of gold bullion has fallen from its 2011 highs and the prices of even good junior companies have been slashed to as little as half of their former valuations. All the more reason to start returning broker phone calls according to David Galland, Casey Research managing director, speaking on the Friday eve of the airing of a webinar he is moderating, featuring some of the biggest names in the industry.
The webinar, "Downturn Millionaire: How to Make a Fortune in Beaten-Down Markets," features Casey Research Founder Doug Casey, Sprott Global Resource Investments Founder Rick Rule, International Speculator Editor Louis James, "Endgame" Author John Mauldin and Diary of a Rogue Economist Editor Bill Bonner. In this interview with The Gold Report, Galland shares the motivation behind assembling this all-star cast for a golden wake-up call.
The Gold Report: You are moderating a webinar for Casey Research titled "Downturn Millionaire: How to Make a Fortune in Beaten-Down Markets." This is going to air on Monday, April 8.
SK Option Trader continues its winning streak in 2013; closing our sixth consecutive winning trade. This time we profited from the poor performance of mining stocks with a vertical call spread on GDX.
We have long been of the belief that gold mining stocks are one of the worst performing stock sectors; this has been most evident in recent times when mining stocks have underperformed gold and have failed to rally despite equities hitting all time highs.
Archimedes once said that if he had a lever long enough and a place to stand, he could move the world. Today, the half-Greek island of Cyprus appears to be the fulcrum, and the long arm of the EU may be the lever that heaves the entire world over the edge of the abyss.
As Dennis Miller so eloquently pointed out in a recent Casey Daily Dispatch, most Americans would not be directly affected if North Dakota decided to seize citizens' money in order to pay its bills, but all Americans would be deeply disturbed by such an action. The principle of the matter couldn't be clearer; outright theft is wrong. But it'd probably be fear, not principle, that would have people heading for their banks in droves to withdraw cash as fast as possible.
Of course, on a moral plane,
By: Eric Sprott & Shree Kargutkar
“If there is a risk in a bank, our first question should be: ‘Ok, what are you the bank going to do about that? What can you do to recapitalise yourself?’ If the bank can’t do it, then we’ll talk to the shareholders and the bondholders. We’ll ask them to contribute in recapitalising the bank. And if necessary the uninsured deposit holders: ‘What can you do in order to save your own banks?’” – Jeroen Dijsselbloem, March 26, 2013
A deal has just been struck with Cyprus. However, it was not the deal that Cyprus saw other countries receive. This was not the deal received by Greece, Italy and Spain. There were no bailed out banks in the aftermath. There was no transfer of risk from over-levered banks to the taxpayers. The risk was pushed back onto the banks.
We expected that the Cypriot fiasco would have little effect for gold and silver, but many gold bugs have given the crisis in Cyprus a great deal of attention; despite this attention the metals market has failed to rally out of its recent downward trend.
The absence of a rally in the underlying precious metals has resulted in mining stocks remaining relatively flat over the last few weeks, backing up our argument that one should not buy gold stocks to take advantage of the Cyprus fiasco. Last week we wrote about this at length, showing how improbable a rise in gold stocks as a result of the events in Cyprus was.
Many gold bulls believe that the events in Cyprus would lead to a great increase in demand for gold as a safe haven asset. This increase in demand would therefore push gold up out if its downward trend.
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Thursday, April 11, 2013 at 09:41AM