Yesterday I made 15% or so on my GLD and SLV diagonal option plays and have positive theta on them. That means time decay on the position makes me money each day. It is a way to own gold and silver and get interest on it. On my SLV option diagonals they are currently worth $13,000 and made $1700 yesterday so that is 15% gain in one day as started with $11,300. And I get $23 theta a day, you think of that as a dividend. It was $35 theta a day on Wednesday, but I rolled the 3-24 short options at 20.5 and 21 up and out to 21.5 and $22 and 3-31 yesterday. That is how use this, sell weekly options above current SLV price and roll them each week to next week.
I am long Jan 24, Sept 23, July 23 at 18-19-20ish strike and have about 40% more long calls than short calls.
So $23 a day is a 64% "dividend/year" on silver and I have $58,000 delta. Did the same thing for shorting Tesla, here https://seekingalpha.com/instablog/535947-darp-research/5236097-how-to-short-tesla-77-percent-chance-to-win-make-35-percent-sits-still-and-low-risk The principle is the same, just direction is different. Now that have put this down, think should go bigger on my SLV diagonals.
Will show you an option P/L on a trade can place right now.
Wow, that is a 203% "dividend" or theta income per year! And for a small move up it has about 7 to 8 times leverage too. I have been using diagonal option spreads for years.
Why this way to play SLV and GLD is not being talked about?? I did this late 2021 through early 2022 on the XOP oil stocks ETF, and made a killing.
So now you know how to make a 64%, or even a 200% "dividend" on silver through SLV ETF option diagonals. The next question, what if a bunch of people did this? Would it cause a gamma squeeze on SLV that would cause a squeeze on physical silver? And BTW on gold, the GLD, it works the same. So back to a squeeze, silver is a tiny market. I am interested in option experts weighing on whether this way to play silver could squeeze the entire silver market? If it does not, it is still the best way to play silver I know of, unless the entire financial system in USA melts down. Been using the method for years.