r/thetagang
Silver Bobbleheads Are Paying Heavy Fees ...
Silver prices dropped sharply due to a stronger USD and higher yields, hurting long holders while benefiting short sellers.
- Resurgent U.S. dollar creates headwinds for precious metals pricing.
- Higher bond yields increase the opportunity cost of holding non-yielding assets like silver.
- Technical breakdown marked by the steepest single-day drop in over two months.
Silver suffers the steepest single-day drop in over 2 months as precious metals came under strong selling pressure amid a resurgent U.S. dollar and higher bond yields.
Silver bobbleheads are paying heavy fees to owners of short silver positions...
lol this isn’t theta gang when you’re selling 98 delta
Absolutely no difference in just Shorting SLV
The 2028 bear case?
Silver hits $120, everybody starts talking about a new paradigm, miners issue stock like confetti, supply responds, speculative fever burns out, and real rates stop being a tailwind.
By 2028, silver is back in the mid-$30s, and the same crowd that was calling for $250 is explaining why $35 is actually bullish. Bull markets don't die from bad news. They die when the good news is fully priced in.
There might be borrow fees for shorting SLV, but no fees for shorting SLV calls.
High borrow fees would be priced in, no?
I guess the options market could have forgotten to price in the borrow fee into SLV calls. Market makers hate this one simple trick
Yes I'm sure. It doesn't have to be this particular trade lol. You're making money more so on slv being down vs anything from theta.
I'm guessing thats your twitter account?
You may want to learn the difference between long CALLs and short CALLs before critiquing the trade.
Buying futures and being short deep ITM calls are not the same thing. One requires paying for exposure, the other collects a premium upfront, generates interest on that cash, and benefits from time decay.
The delta may look similar, but the P&L mechanics are not.
You are totally wrong! You're missing the main point. The short CALLs aren't just directional exposure. They're also a cash-generating position.
The premium collected sits in the account, earning interest while time decay does its thing. That's a return stream you don't get from a plain short stock position.
A bounce is always possible. Markets don't move in straight lines. What matters is that my position isn't based on predicting tomorrow's candle. It's based on collecting premiums, earning interest on that premium, and managing the trade over time.
If silver rips higher, I'll adjust. If it chops around or keeps drifting lower, theta keeps paying.
The trade isn't 'silver must go down'. The trade is 'the option is overpriced relative to the risk I'm taking'.
Snapshot of the position, or it didn't happen.
I don’t know what’s going on with these trades but it looks dangerous. Good luck but no thanks.
Good luck, accepted.
As for the "no thanks" part, no offer was made. I'm managing my own book, not yours. 😄
Those deltas are basically just owning silver at that point, might as well buy the futures contract instead of paying for the privilege.
Paying for what?
These are naked CALLs.
You're describing a long CALL position. I'm short on those calls.
Small detail, but it's the difference between paying a premium and collecting it. LoL
Fair point, I misread the position - you're right that collecting premium on those high deltas is way different than paying for it, that's the whole edge there.
When you short a stock you also instantly get cash lol, this point doesn't make sense. You would've been better off playing Money market or buying a high yield bond if your plan was getting interest lol. This is a losing trade and your opportunity costs are WAY higher than interest earned. These options are so deep ITM that it's all just intristic value with no extrinsic value left at all. The @25 call has extrinsic value of 9 dollars, so congrats on making 900 bucks in 2 years lol