r/thetagang
Hammering the SILJ ETF with naked calls and vacuuming up theta
Selling naked calls on SILJ to collect theta while silver prices drift lower, hedging against downside by monetizing remaining bullish sentiment.
- Silver and related ETFs (SILJ, SLV) are currently drifting lower in price.
- Naked call selling carries unlimited risk if silver experiences a sudden sharp rally.
just talk normal. why did you get an LLM to write two sentences for you?
Do whatever you want with your money, ill advised or otherwise, but don't call this a hedge
It’s a hedge while losing money at the same time
Hedging against making money 🤣
Been using that strategy for a while now.
I already commented on your other post.
I don’t think collecting premium is a bad idea here but I’d personally want to own the underlying as a hedge
So buy it and post the snapshot of your position.
So buy it and post the snapshot of your position.
Bro you sold THREE calls. I’m dead.
Clueless bobbleheads always count contracts instead of notional exposure. But if it makes you feel better, next time I'll sell thirty so the trade looks more impressive on a screenshot. LoL
Spicy
Naked calls on a falling asset works until it doesn't, and that theta decay stops mattering the second silver rips. You're essentially betting against your own position with no safety net.
You're assuming the naked calls are being sold by someone who's bullish on silver. I'm not. If my thesis is that silver is overextended and headed lower, then short calls are aligned with my view, NOT betting against my own position.
And yes, a violent rally hurts short calls. That's not some hidden flaw, but a defined risk of the trade. By the same logic, long calls stop working the second silver dumps.
Fair point on alignment, but the asymmetry still matters: if silver rallies 20%, your calls blow up fast and hard. If it drops 20%, you made some theta but now you're managing a position that can crater in days. Long calls at least cap your loss at premium paid.
If you're so convinced long calls are the superior trade here, why not post a screenshot of your $SLV call position? It's easy to lecture strangers about risk from the sidelines. Conviction is measured by capital at risk, not by Reddit comments.
So let's see the trade. Or is this another case of knowing exactly what everyone else should do while keeping your own money safely out of the picture?