Showing posts with label Derivatives. Show all posts
Showing posts with label Derivatives. Show all posts
The Return of the Benton
Reflection on WB Claims (Guest post by Warren)
NOTE: If you haven't already, please read Louis Cypher’s WB Disclaimer if you haven’t already. (Also recommend reading about Louis' Free Silver, and maybe also VictorTheCleaner's Freesilver). My Disclaimer: I need to get write down the things rattling around in my head - just observations, references and questions.
People seem to have generally taken sides in the Wynter Benton story. Unfortunately for the naysayers, the story won’t die because while it’s possible to call BS on the claim itself, it’s not possible to refute the fact that a claim was made. The claim is that someone is taking on JPM in the silver pits and got an 80% premium when they last stood for delivery at the Comex.
The two main arguments against the validity of the claims centre on the ‘rules’ of the game and the technical knowledge of Amber/Wynter. The first rests on the assumption that the Comex and JPM are in fact playing by the rules. The second rebuttal rests on the assumption that Amber (a chosen spokesperson) needs to be a professional options trader and have the same vernacular as such. Life is too short; on with the show. In my own household, I received theatre and drama in such a large dose that I nearly choked to death. My enthusiasm should be curbed at this point, yet I cannot. The claims are too interesting and as an investor I have the responsibility to chart the most relevant and likely future outcomes.
As you may know, Amber recently spoke [02-Mar-2011] and updated that their raid on Comex was successful. Hot stuff! Earlier [14-Feb-2011] they had stated their definitions - that if Silver traded above $37/ounce that was a win for them (this appears to be happening – they still have until March 15th). They did claim that silver would trade above $40 … didn’t happen. Okay, why not? Well, turns out the usual suspects added more silver shorts during this time period. Was the group confounded by this? Yes. wynter_benton thought this important enough to reappear and throw the question to the Yahoo boards [05-Mar-2011]. So in the face of incredible buying firepower, silver price manages a ferocious but apparently restrained pace. Why is that? Focus has turned now to some bigger questions – if the price really has a glass ceiling of derivatives at the $36/ounce level, yet the market is confronted with nuclear demand for physical silver – what happens? Is this where the pent-up-pressure blows a gasket in other parts of the plumbing? Would JPM really short heavily if they knew they couldn’t cover? Is this where they collapse the market, knowing they can wriggle out? Is silver going to do the same thing as 2008?
Flame away but remember, the claims aren’t mine – they belong to the Wynter Benton Group and as far as I can see, they’ve been in the money with most of their calls (sic). If Amber speaks again, you’ll want to take note because (whether you admit it or not) their questions and strategies are more or less your own questions and strategies – but they have many millions more on the table (than you do).
Time for some gratuitous movie references – the Evil Empire’s willingness to short reminds me of this scene in Return of the Jedi - the rebels make the assumption they are catching the empire unawares...
For what it’s worth – Turdle GG [08-Mar-2011] over at the Watchtower comments thread discusses this far better than I do (the derivatives thing, not the movie scene). It’s his comments that put my mind thinking on these thoughts. I myself should be studying; I can hear my mom upstairs asking me if I’m looking at Zero Hedge again.
People seem to have generally taken sides in the Wynter Benton story. Unfortunately for the naysayers, the story won’t die because while it’s possible to call BS on the claim itself, it’s not possible to refute the fact that a claim was made. The claim is that someone is taking on JPM in the silver pits and got an 80% premium when they last stood for delivery at the Comex.
The two main arguments against the validity of the claims centre on the ‘rules’ of the game and the technical knowledge of Amber/Wynter. The first rests on the assumption that the Comex and JPM are in fact playing by the rules. The second rebuttal rests on the assumption that Amber (a chosen spokesperson) needs to be a professional options trader and have the same vernacular as such. Life is too short; on with the show. In my own household, I received theatre and drama in such a large dose that I nearly choked to death. My enthusiasm should be curbed at this point, yet I cannot. The claims are too interesting and as an investor I have the responsibility to chart the most relevant and likely future outcomes.
As you may know, Amber recently spoke [02-Mar-2011] and updated that their raid on Comex was successful. Hot stuff! Earlier [14-Feb-2011] they had stated their definitions - that if Silver traded above $37/ounce that was a win for them (this appears to be happening – they still have until March 15th). They did claim that silver would trade above $40 … didn’t happen. Okay, why not? Well, turns out the usual suspects added more silver shorts during this time period. Was the group confounded by this? Yes. wynter_benton thought this important enough to reappear and throw the question to the Yahoo boards [05-Mar-2011]. So in the face of incredible buying firepower, silver price manages a ferocious but apparently restrained pace. Why is that? Focus has turned now to some bigger questions – if the price really has a glass ceiling of derivatives at the $36/ounce level, yet the market is confronted with nuclear demand for physical silver – what happens? Is this where the pent-up-pressure blows a gasket in other parts of the plumbing? Would JPM really short heavily if they knew they couldn’t cover? Is this where they collapse the market, knowing they can wriggle out? Is silver going to do the same thing as 2008?
Flame away but remember, the claims aren’t mine – they belong to the Wynter Benton Group and as far as I can see, they’ve been in the money with most of their calls (sic). If Amber speaks again, you’ll want to take note because (whether you admit it or not) their questions and strategies are more or less your own questions and strategies – but they have many millions more on the table (than you do).
Time for some gratuitous movie references – the Evil Empire’s willingness to short reminds me of this scene in Return of the Jedi - the rebels make the assumption they are catching the empire unawares...
For what it’s worth – Turdle GG [08-Mar-2011] over at the Watchtower comments thread discusses this far better than I do (the derivatives thing, not the movie scene). It’s his comments that put my mind thinking on these thoughts. I myself should be studying; I can hear my mom upstairs asking me if I’m looking at Zero Hedge again.
Subscribe to:
Posts (Atom)