With silver and gold range bound for the last few years, we are likely working off overbought conditions through time. Silver and gold are most likely trying to bore investors to death before they make the next move higher. But that doesn't mean you can't generate some income. I've been working out a strategy to essentially get "free" physical by using the volatility of options on the SLV etf.
You buy in the money LEAPS, Jan 2015 $30's for example and then when silver goes towards the top of the range you sell weekly options (covered write/call) that are near the money or right in the money against the deeper in the money LEAPS.
Hopefully your weeklies expire worthless (if silver goes towards the bottom of the range) and you collect the premium from the options contract. You can take that premium from the options contract and go buy physical.
If silver spikes then your LEAPS get called away and you still rake in a nice profit plus you get to keep the premium from the weekly options contract.
Rinse and repeat, as silver moves to the peak and trough of the range on its chart.
You can essentially use their derivatives ponzi scheme to get some free silver. Comments welcome.
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