Yo Pit Crazies,

Happy Easter to all!

Looking at big volumes is something that started in trading pits somewhere around the Egyptians trading grain futures. That’s something we do in Big Money Flow nearly every day.

They are doing something very odd in Silver stocks.  Take PanAmerican Silver Co (Ticker: PAAS):

PAAS 1 year chart with longer term IV on the bottom chart

What are they doing and why are they doing it?

Lotto Calls Are Going Up in PAAS

I am using PAAS but it could be any silver or gold mining stock of consequence. 

They aren’t buying just ATM calls but calls 50% out of the money for next year. And they’re doing it in very large sizes. PAAS is still well below highs of the last year like most commodity stocks.

Note the PAAS Jan2024 30 and 32 calls. Mark and I saw call buying all week. 

Frank and Griff have been riffing on the decline of the dollar as a reserve currency and the rise of BRICS using another currency. This is unprecedented stuff and would make fungible metals like gold and silver an alternative. 

I do own some gold and silver stocks, some from higher levels and some lower, but I will be adding more. I even like the idea of writing some puts here to fund upside calls.

Either way, big dough is taking a big punt on the very upside.

Happy Easter, and I hope you enjoyed the long weekend.

To Your Trading Success,

AG