/biz/ - Business & Finance

An anon a week or two ago said that he had done some calculations and he expected SILJ to go up to 7x if silver hits $50. I don't know enough about the financials to verify that myself, but it sounds reasonable for a silver miner ETF. January $35c SILJ calls are around $100 right now. If SILJ was to hit $75 (5x from right now) at any time before January, those calls are going to hit over $3500 each. I don't think $50 silver this year is a sure thing, but I think the risk/reward on those calls is very good, and since it's on an ETF, there is less risk of it suddenly dumping than with a single junior miner. If you think the price movement might happen this spring, May calls have even higher leverage, but, obviously, a shorter time frame. My plan is to buy some of these calls basically as lotto tickets, and if silver actually hits $50, cash out and immediately buy physical with the profits. Did I miss something, or is this a really good play?