Spring Runup and consequent drop= some wild ass delta hedge?

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leadbrasssilver
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Spring Runup and consequent drop= some wild ass delta hedge?

Started reading Quants last night and couldnt help but think to myself that the spring runup in silver prices might have been "allowed/created" as some kind of delta hedge/ arbitrage opportunity for Hedge Funds/ Bankers. Short at the peak to offset losses earlier or go long at the summer bottom. I'm only a few months in to my self education of the global financial system so my hypothesis may be ridiculous. 

Perhaps someone with a deeper understanding of these strategies could comment on the possibility of this scenario?

Edited by admin on 11/08/2014 - 06:09

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leadbrasssilver
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no thoughts? here's mine

Ok, we all "agree" silver is cheap. natural market dynamics take hold for a short period of time in March and April. Silver spot rises concomitant  with demand. One lonely Sunday night Osama announces Obama has been captured and killed, oops you know what I mean. 10% of annual production is sold off in a matter of minutes. Exhibit A http://www.youtube.com/user/BrotherJohnF#p/u/28/g6CdYYH8AI8.

Fast forward and rewind. media gets a hard on, bears go nuts, naysayers are happier than a puppy with two pricks.

So I'm short as shit at the peak and I popped this bitch.

now I go long delicately as the dust settles. Ride that cloud down to the ground. Down to the summer doldrums. 

Maybe I'm crazy. 

maybe slv is the way to go and physical is over valued.

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Long Bankers, Short Rope. I love it when a plan comes together.

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