9/7/12 MID AFTERNOON

EARLIER TODAY ROLLED THE SHORT 29.50 SLV WEEKLY CALL INTO SEPT22 29.50 CALL AT .07 CREDIT AS SLV CONTINUES TO STAY OVERBOUGHT ON QE3 HOPES.

WE CAN JUST KEEP ON ROLLING THIS BAD BOY IF WE HAVE TO.

SPR 1/ 1 SLV ISHARES SILVER TR Credit $0.07 Debit
0.05
Credit
0.15
Day 09/07/12 11:22 AM ET
$0.07

CREDIT

BOT to Close 1 SLV Call SLV Sep 07 2012 29.50 Call 3.10 3.20  EXECUTED
SLD to Open 1 SLV Call SLV Sep 22 2012 29.50 Call 3.15 3.25

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8/31/12 3PM

AS A RESULT OF JACKSON HOLE TODAY, THE “BERNANKE BUBBLE” PERSISTS. YET AGAIN TODAY HE CONTINUED TAKING A FEATHER AND TICKLING THE MARKETS BALLS STILL YET EVEN MORE BY TEASING THE MARKET WITH QE3 AS USUAL.

IN RESPONSE TO THAT, GOLD AND SILVER HAVE ROCKED HIGHER, AND MADE US HAVE TO ROLL OUR INITIAL 1/10 SHORT WEEKLY CALL FOR .14 CREDIT. WE ROLLED INTO SEPT7 29.50 CALLS AT .14 CREDIT

You are rolling an existing position.
Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Close 1 SLV Call SLV Aug 31 2012 29.50 Call Credit 0.14 Day Order
Leg 2 Sell to Open 1 SLV Call SLV Sep 07 2012 29.50 Call

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THE PLAN IS TO START A  1/10th POSITION IN JAN14 SLV 26 CALLS, I WILL LEG INTO AND ADD TO THIS POSITION OR CREATE SIMILAR SPREADS TO ADD TO OUR LONG SLV POSITION INTO JAN2014.

THIS PLAN WILL BE EXECUTED FOR AN ONGOING OFFSET TRADE AS WELL ON A WEEKLY BASIS.

WHAT I MEAN BY THAT, IS THAT EVERY WEEK ON THIS AND OTHERS JAN14 LEAPS I ADD TO THIS POSITION WILL SELL WEEKLY CALLS AGAINST THE JAN14 LEAPS. I WILL TARGET  TO SELL THE WEEKLY CALLS FOR CREDIT ANYWHERE FROM .60 TO 1.00 CREDIT AGAINST THOSE LEAPS ON AN ONGOING BASIS. IF FOR SOME REASON COME EXPIRY TIME ON THE WEEKLIES, I WILL SIMPLY ROLL THEM AHEAD TO THE OTHER WEEK FOR A NET CREDIT EACH TIME OR EVEN COST. A MAJORITY OF THE TIMES I WILL MOST LIKELY NOT HAVE TO DO THAT, AND THESE WEEKLIES SHOULD PAY FOR THE JAN14 LEAPS WITHIN 10-15 WEEKS OR LESS.

WHEN THAT HAPPENS, THE JAN14 LEAPS SELLING WEEKLY CALLS AGAINST WILL START TO PRODUCE WEEKLY INCOME OF 70-100+ DOLLARS PER SPREAD WE OWN LATER ON. ALL THE WAY THRU THE YEAR 2013

SO LETS DO SOME SIMPLE MATH HERE ON THIS PLAN.

WE PLAN ON HAVING 10 OF THESE EVENTUALLY OPEN.

BUT FOR THIS ONE SPREAD WE HAVE, IF PAID BACK BY SELLING THE WEEKLY AGAINST THIS LEAP, AND THAT BRINGS OUR COST DOWN TO ZERO BY A CONSERVATIVE ESTIMATE OF END DEC12.

THAT LEAVES US SELLING AT CONSERVATIVE .70 PER WEEKLY SALE FOR 52+ MORE WEEKS, = POSSIBLE 52X70= $3600 GIVE OR TAKE AS A BALLPARK ESTIMATED PREMIUM PROFIT, NOT COUNTING THE ORGINAL SLV LONG 26 JAN14 LEAP YOU HOLD FOR FREE AS WELL, AND OTHERS WHEN ADDED.

OUR FIRST INITIAL 1/10th OPEN TO THE TRADE IS AS FOLLOWS.

THE MARKET MAKERS WERE MESSING WITH THE ORDER EVERYTIME SUBMITTED. I EVENTUALLY WENT from 6.12 to 6.14 and then 6.15 AS WHEN EVERYTIME SUBMITTED at 6.12 THE MARKET MID-PRICE WENT TO 6.14 AND NO FILL.

THEREFORE, IN ESSENCE,  WHEN ENTERED AT 6.15 IT FILLED IMMEDIATELY.

Order Details

You have entered a spread.
Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Open 1 SLV Call SLV Jan 18 2014 26.00 Call Debit 6.15 Day Order
Leg 2 Sell to Open 1 SLV Call SLV Aug 31 2012 29.50 Call
Quote                                             SLV                               29.78                               0.86                         Bid                             29.77                         Ask                             29.78                         Volume                             12,955,048
SLV JAN 18 2014 26 CALL
SLV AUG 31 2012 29.5 CALL
                  —                   —                   —
Bid 6.75 0.70
Ask 6.90 0.71
Last 6.55 0.72
Change 0.35 [5.65%] N/A [N/A]
Volume 3 1,463
Delta 0.70 0.59
Open Int 950 0
Desc SLV Jan 18 2014 26.00 Call SLV Aug 31 2012 29.50 Call
Net Quote
Bid
6.04debit
  Mid
6.12debit
Ask (natural)
6.20debit
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