October 14th, 2010:
NIA's President Sells SLV Call Options and Buys MCO Put Options
NIA's President just sold his 1,300 January $20 SLV call options at $4.25. He had purchased these options on February 5th at $0.89 and NIA suggested them to you at a price of $0.93.
His profit before commissions was $436,800.
Because options expire on a certain date, they are high risk and it is important to take profits when you have them, especially if you are up a large percentage like 378%. NIA still believes silver is going a lot higher, possibly to $50 per ounce or more within the next year or two, if we just have high inflation. With hyperinflation, the upside potential for silver is infinite.
NIA's President is making a bet that we will soon see a sharp decline in the stock of Moody's Corp. (MCO). He just purchased 150 MCO January 2011 $25 put options at a price of $1.30.
MCO is one of the ratings agencies that gave AAA ratings to subprime mortgage bonds that didn't just decline in value but became completely worthless. MCO is currently giving AAA ratings to U.S. treasuries, which NIA believes will soon become completely worthless.
The U.S. has absolutely no way of paying back its national debt without creating massive inflation. MCO should be rating U.S. treasuries as junk, but by rating them AAA it is a sure sign that there will be no need for ratings agencies like MCO in the future.
If you have no options experience, we strongly urge you to stay away from options trading because it could be very dangerous. Neither NIA nor its co-founders are investment advisors. Never take anything we say to be investment advice.
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