Higgenbotham wrote:Wired money out of my account this morning. Party is over.
Higgie, you are far more worried than I am about brokers failing and people not getting the wealth that their statement says they have. In a country where the idea of "too big to fail" is now encoded as law, I think the government would print as much money as need to protect customers at brokers with the government's SIPC insurance. http://www.sipc.org/how/brochure.cfm
It has been a bad week for me. My S&P puts expired a week ago and my silver options are down sharply. I bought more silver options late yesterday.
I expect to keep buying silver options if prices stay low. The Jan 2014 SLV calls are available now. When I buy a call, I think there is some computer that borrows money at crazy low interest rates and buys SLV and also an SLV put. So it is almost as if I am borrowing money at crazy low interest rates and buying SLV. In any case, it seems a way to take advantage of crazy low interest rates. Leverage can be dangerous though, clearly.
On the bright side, I did sell some calls when they were much higher than now, so it is like I bought twice as many for the same money. Result is I now own more SLV calls than I ever have before.