You don't understand writing covered commodity futures, do you?
You don't understand writing covered commodity futures, do you?
OK, I'm game.... you explain it to me... No copy-paste explanations.
OK, I'm game.... you explain it to me... No copy-paste explanations.
They sit on their huge silver inventory and write futures contracts at a premium to deliver the silver in the future. They get paid the time value, risk free. If the uninformed public runs silver up, they will just sell more futures at a higher price. You help them.
They sit on their huge silver inventory and write futures contracts at a premium to deliver the silver in the future. They get paid the time value, risk free. If the uninformed public runs silver up, they will just sell more futures at a higher price. You help them.
Unless, of course, people cash in that paper. MAJOR problem.
Unless, of course, people cash in that paper. MAJOR problem.
But this is all about shorts...
But this is all about shorts...
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