Physical Silver Hedge

[Jonflyfish]

My charts are calling for a somewhat minor correction before inevitable higher prices.
Thus, a hedge was initiated for 70% of the physical position @ 20.45 with a stop @ 20.56 to lift this tight hedge.

[oober]

The only thing I am hedging right now are my miners, I opened a position in FAZ last week and added some more today.

[Jonflyfish]

Bumped the physical hedge to 90% @ 20.47 with the same very tight stop.

[Jonflyfish]

Fully hedged now at $20.57

[beauanderos]

Fully hedged now at $20.57

How does this work with physical? So if the price drops below $20.57 you're in cash a hundred percent? Or you just make some money to offset your loss? If you are stopped out, and then the price runs up while you're parked in cash you have to wait sidelined all this while? I'm unclear on this.

[Jonflyfish]

Fully hedged now at $20.57

How does this work with physical? So if the price drops below $20.57 you're in cash a hundred percent? Or you just make some money to offset your loss? If you are stopped out, and then the price runs up while you're parked in cash you have to wait sidelined all this while? I'm unclear on this.

Beauanderos- I just take a financial short position equal to the physical quantity. So, for each ounce I retain in physical possession, an ounce is then sold short on the financial side.
Today I ended up trading it around during the volatility and left a full hedge. Worst case, I lose on the financial side while the physical side offsets the loss with an gain in value. Best case- what the financial hedge makes gets poured back out of the account to accumulate more physical. There are more complex strategies but will use just this simple physical/financial hedge strategy here.

[beauanderos]

Fully hedged now at $20.57

How does this work with physical? So if the price drops below $20.57 you're in cash a hundred percent? Or you just make some money to offset your loss? If you are stopped out, and then the price runs up while you're parked in cash you have to wait sidelined all this while? I'm unclear on this.

Beauanderos- I just take a financial short position equal to the physical quantity. So, for each ounce I retain in physical possession, an ounce is then sold short on the financial side.
Today I ended up trading it around during the volatility and left a full hedge. Worst case, I lose on the financial side while the physical side offsets the loss with an gain in value. Best case- what the financial hedge makes gets poured back out of the account to accumulate more physical. There are more complex strategies but will use just this simple physical/financial hedge strategy here.

What? Whattttt????? JPMorgan is a member of realcent???

[Jonflyfish]

Shhhh....Trying to retain a Low profile here
And unlike others "on the desk", I only "hedge" a fully qualified physical quantity in possession. As for the "non-hedged" trades....
Tonight, we...err I "massaged" silver to new fully hedged price of $20.59

[Jonflyfish]

Had to work this thing around all morning.
New hedge value of 20.77

[Beau]

when do we see the $9. one guy predicted is that in the next correction?

[Jonflyfish]

when do we see the $9. one guy predicted is that in the next correction?

Who's that?
My forecast has been to see $22 on the recent break.