I think so! at least on Friday...that was an amazing recovery by silver early in the day, after banks whacked it hard pre-market.
It was even a *more* amazing move by HL to bust thru $6 on a Friday!
If silver moves up above $20.50 and holds next week, HL could really crank for a change.
yes, to experiment - last year, I bought 2 lots of HL options, and 2 months ago, I bought a third lot. All 3 were 20 call options.
It's the first time I ever bought options, just to see how they worked and just how much leverage they brought to the trade.
It turns out they bring a ton of leverage, on the down and up side.
1. bought 20 $4.50 Jan 16 calls at ~20 cents ($400 cost) and they expired worthless (HL never hit 4.50 before Jan 16)
2. bought 20 $4.50 Jan 17 calls at ~40 cents ($800 cost) and they are now worth a bunch (look it up on the yahoo options page). I'll decide what to do with them in Nov-Dec, as donating them might be a choice I use)
3. 2 months ago, I bought 20 $5 Jan 18 calls at 90 cents ($1800 cost) and they are roughly doubled now.
What Kored said seems mostly right, tho I've limited experience with them to this point. I'll know a lot more when I decide how to dispose of them starting late this year...but I know that HL will be priced above $6-8 and these particular options will be worth a small fortune.
just this week, they added 2 more call option choices to the Jan 18 series, strikes at $5.50 and $10.
in 2 days, the $10 calls increased from 50 cents to 80 cents. That seems like a, and correct me if I'm wrong, 60% gain in 2 days. yes? That's serious leverage to a stock that rose from ~5.50 to ~$6.05 in those same 2 days.
BONGER - saw you posted the other day, glad you're still alive and still holding your hoard. I sold ~half of mine on the way down from $11, kept roughly 26,000 shares, avg of under $2.50 still.
If anyone has concise knowledge of how IRS rules work relative to exercising, selling at a profit, selling at a loss, letting expire worthless, or donating appreciated options...please chime in here. It'd be a big help to me and be appreciated.