Author discusses protecting gold and silver positions with options, suggesting closing silver positions and moving into silver miners like WPM with puts.
GLD — LONG The author suggests protecting gold positions with cheap 6-month puts at 0.85 strike, as gold is in danger territory after recent gains. The mechanism is hedging against a decline while retaining upside, though it won't protect against slow declines. The main risk is that puts are cheap but may not fully hedge.
Gold: protect with puts x0.85 6months. Puts are cheap, good solution.
WPM — LONG The author recommends closing at least 30% of silver positions and moving into silver miners like WPM, as miners have not fully appreciated silver's rise and offer better upside potential. The mechanism is that miners are more reactive to silver prices, and puts on miners are cheaper than on silver. The main risk is that miners are more volatile both up and down.
Close silver positions and move to silver miners (say WPM). They say silver miners are not fully appreciate silver metal up move, so maybe upside potential is better.