100% + Per Year – Merry Christmas

It’s the Holidays, and I’m going to show all of you dear readers how to grow your account, using options, so that in a relatively short time period you can achieve financial security.

Your welcome.

My time frame here is usually 3 – 4 weeks with each trade. I’m only interested in legging into “deep [buy and sell] writes”: i.e. buying the underlying currency pair and selling in-the-money calls or selling the underlying currency pair and selling in-the money puts. The trend is my friend and time is on my side.

After 1 – 2 weeks, or sooner if the occasion rises, I’ll consider insurance or rolling over to a higher/lower strike price if needed.

Last week on Wednesday I initiated “buy writes” in gold. I bought the futures and sold the in-the money calls for expiration on January 7 [100 oz] and expiration on January 31 [200 oz]. On Friday I initiated “sell writes” in EURUSD for expiration on January 14.

Below is a screen shot from my statement page. I’ll write more on this next time, but for now, study it closely to try and figure out what I’m doing and why.

If you are new to options, I suggest you go to the Options Institute and brush up. It is in your best interest to see and know what I’m doing. Ultimately, your account will thank you for your study and work.

-vegas
P.S.
To get a full screen shot of my statement, just place your mouse over the statement and double click your mouse. A full view then becomes available.

Bart Spills the Beans

Sooner or later it had to happen. I mean, you can’t keep a lie going forever [unless of course you’re talking about the “grassy knoll”].

In a stunning admission that the CFTC is nothing more than a repository for resumes on your way to a better, more corrupt profitable high paying government job, Commissioner Bart Simpson Chilton admitted in a speech on December 8, 2010 that the CFTC “had proof” that one trader held more than 40% of the open interest in the silver futures market.

Really Bart?

And pray tell readers, who do you suppose that might be? I’m sure JP Morgan is putting no pressure on the toothless, ineffective and corrupt CFTC to suspend or delay position limits, or other regulatory measures that might actually prevent markets from being manipulated. Why, this is Amerika.

Except for being the first time it actually did anything, can you think of any reason why the CFTC would drag its collective feet? Hey, if it was you or me that held 40% of the entire short position in a market, do you think for one minute they wouldn’t be crawling up our ass demanding to know what we were doing and why, and then forcing us to liquidate? All in the name of “fairness” don’t you know.

Well, imagine for a hypothetical minute what would happen if JPM had to exit all those shorts. Silver exactly where in price 2 minutes after this is announced?

So, you can imagine the financial ass-whipping that would ensue. We can’t have this in “free markets”. “How do you expect us to make money and spend part of it on government corruption if you don’t allow us to manipulate a market?”

Back in the fall of 2008, I was told that if I voted for McCain, fat-cat “Wall Street types” would ruin the markets by stampeding the “little guy” into oblivion and ruining it for everybody. Hey, they were right!

-vegas

Can You Hear the Money Whooshing Out of Panama?

Call it what ever you want; tax treaty, mutual assistance information exchange, etc. To me it is a complete sell-out of privacy and ultimately security.

I am referring to the recently signed tax treaty [Nov. 30, 2010] between the United States and Panama. Little tax-cheat Treasury Secretary Timmy Geithner signed on behalf of the U.S., while the Panamanian legislature has a full year to ratify.

Message to the people of Panama: your politicians are idiots. If you think for a second you have gained anything by this you are sadly mistaken. Your country is going to lose at least $135 Million per year from IBC and Foundation renewal fees. Your banks, brokerage houses, and offshore law firms will definitely lose business; and by default jobs that were considered valuable to the educated middle class will flee and be gone.

Since the end of WWII, someone please enlighten me on exactly which countries have benefited from U.S. “tax deals”. Switzerland, Lichtenstein, Turks & Caicos, and the Cayman Islands have not benefited one iota from partnering up with Uncle Sam. If anything, they are in much worse shape than before.

Maybe you guys can go back to selling trinkets and fishing all day to make ends meet, I dunno. But I do know this: you have entered a deal with the devil [U.S.] that will only harm the wonderful people of Panama.

I am not privy to the secret backroom deals little Timmy offered to the gentry-class politicos of Panama. I’m sure, though, they got their collective pockets lined with U.S. taxpayer dollars.

For the One Big Ass Mistake America crowd, they of course get what they want; i.e. the ability to go after U.S. citizens who refuse to watch their hard-earned money stolen from them through socialist confiscatory taxation. Socialism always works until you run out of other people’s money.

If you have any money in Panama, in any way shape or form, I suggest you get on your horse and get it the hell out of there before the Panamanian Legislature commits suicide and ratifies the treaty. When that day comes, the people of Panama will be the true losers.

To help everyone in their quest to escape socialism, communism, and governments who think your money is theirs, I am including this link for your perusal and inspection. This offshore law firm can help you; their website contains a ton of valuable material you won’t find anywhere else. Please read it! Here is the link:

http://www.panamalaw.org/

Long live John Galt!

-vegas

Update December 6, 2010
From the prestigious blog http://pajamasmedia.com/instapundit/
right underneath the photo of the shark, paragraph 3:
"They’ve also been hit pretty hard by the financial collapse."

This of course is referenced to the beautiful island of Provdenciales in the Turks & Caicos. Yea, it not only has been the financial collapse, but since they flipped on expatriates [Scotia Bank, IRS and Revenue Canada] tourism and real estate sales have never been the same.

I don't feel sorry for them: they dug their own grave. Now that they have taken U.S. "help", the real money has left in droves. The island is a shell of its former self and is likely to stay that way for a very, very long time. Happy trinket selling and fishing!

Get Ready Mr. Morgan

It’s gonna get interesting in the next few weeks. If J.P. were alive today he would surely have his panties in a bunch. Never one to stand idle while his firm takes a hit, I’m betting he would be a tad madder than the above photo indicates.

Unable to continue manipulating the silver and gold markets due to various class-action lawsuits and CFTC scrutiny, the clock is ticking ever faster to the December delivery clusterfark for messengers Morgan & HSBC.

On Monday, open interest in Dec. silver stood at approximately 17,000 contracts [86,000,000 oz.]. The Comex [division of CME] reports approximately 48,000,000 oz.  available for delivery. Open interest in Dec. gold stood at approximately 59,000 contracts [5,900,000 oz.]. The Comex reports approximately 2,600,000 oz. approved for delivery.

I got in touch with my chief math guy, Jethro Bodine, just to make sure I wasn’t fudging the numbers. After showing me [for the umpteenth time] his diploma, he assured me naught from naught is still zero and subtracting a higher number from a lower number means you got problems.

With all the POMO [Permanent Open Market Operations] by the Weimar Fed, they’re gonna need all the printed money they can get from “Helicopter” Ben to stem the ass-kicking they’re gonna get come delivery.

Of course, they can always deliver the physical metal, but that is becoming somewhat of a problem since deliverable product is scarce. Instead, expect the dual evil empires to kick the can down the road to Feb. 2011 [gold] and March 2011 [silver], hoping like hell we get a break so they can cover.

If that doesn’t work, expect the next bank bailout at the end of Q1 2011. Soooooooo sorry Mr. Morgan, you lose!!

-vegas

Shifting My Focus

I made a tough decision over the Turkey Holiday.

I have shut down the PAMM effective Monday, November 29, 2010. I think I can better serve the trading community with a new PAMM sometime in Q1 2011 focusing exclusively on the gold and silver market. Stay tuned to the blog as I role out the details in the future. It will be a better PAMM – lower fees, focused exclusively on the precious metals.

I didn’t do this because I had a couple of losing days; I actually did this because I believe going forward into 2011 [and beyond] the major fiat currency pairs [EURUSD, etc.] will be subject to the most massive manipulation and intervention schemes the world has ever seen. How it’s going to turn out I have no idea.

Gold and silver are classic manipulated markets; but once you know how the manipulation schemes work, you can take advantage of them. I have traded both for over 30 years. So, why didn’t I trade these markets much over the last 4 – 6 weeks? Well, it was a classic case of being underfunded in the PAMM account along with heightened volatility that raised the risk levels to an unacceptable level.

The algorithm will always work, but the sad reality is that when market volatility is extremely high, the losses get raised also. No big deal to me, but investors and small traders get spooked easily.

I’m going to continue the blog and give you my insights into trading. I hope you all stick around and continue to support the blog by reading my posts and telling others about them.

-vegas

Happy Thanksgiving Week

Everybody in the U.S. celebrates Thanksgiving this Thursday. As such, I'm traveling and will post my next comments on or about Monday, November 29. I'll still be trading, but I won't be posting anything here or on the fxfisherman forum until then.

Everybody have a good Holiday.

-vegas

Vegas Takes a Punch

Maybe I do look like the guy with his head in the sand [from a previous post]. After today’s trading, I sure feel like it. Not a good day.

It started with AUDUSD and worked its way to EURUSD.  I was bullish AUD [via gold] and bearish EUR. Pretty much all algorithm trades, but what really hurt was the ass-whooping I took on a EURUSD stop during the night.

What can I say? We are in a period of insane volatility and the algorithm has gotten chopped up as a result. In on a cross, and then - BOOM! - the other way to the stop. I just move forward and don’t take it personally.

I just wanted to post so that everyone can see I know how to take an approximate 7% punch. Risks in the business. Ouch! Time to get back to business.

-vegas