Commodities

Unusual Options Activity In ProShares Ultra Silver (AGQ)

Unusual Option Activity In ProShares Ultra Silver (AGQ)

I’m a Silver Bug too, just look at my recent Silver posts if you don’t believe me,

Silver…Getting Some Tender Loving Care Now

Silver Gets No Love…Until Now

ProShares Ultra Silver seeks daily investment results that correspond to two times (2x) the daily performance of the Bloomberg Silver SubindexSM.  This ETF is essentially an ETF on steroids, meaning it’s a levered EFT.  Levered ETF are not for the faint of heart, but are great day trading and short term vehicles for those that have a compelling conviction on a stock’s direction. 

 Ever since I first posted about Silver one month ago, Silver is up 18%.

And since July Silver is up about 25%, while Gold is up about 8%.  I’m not surprise, the gold/silver ratio told me to get ready for Silver to outpace gold once the ratio hits 80.

Which brings me to today’s post.  An impending recession, silver outpacing gold and unusual options activity in a levered silver ETF. Yesterday, the Smart Money bought over 3500 October call options with a strike price at $36. 

The funny thing is the call options are already $2 in the money.  The sad thing is I check for unusual options activity at the end of the day, so I wasn’t able to participate with the Smart Money.  However, based on the ProShares Ultra Silver (AGQ) chart below, I have a feeling this won’t be my last opportunity to jump on the backs of the Smart Money in Silver. If price gets back to its 2011 highs, that would mean a 18X return and plenty of opportunities to get in on pullbacks.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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