J. Johnson’s Latest – Silver’s Call Options Count Keeps Climbing
August 16, 2019
Great and Wonderful Friday Morning Folks,
Gold is lower in the early morning report with the trade now at $1,524.60 down $6.70 after dipping down to $1,515.90 with the high to beat at $1,538.60. Silver is down as well (barely) with the trade at $17.18, off by 3.4 cents after it too was knocked down to a low of $17.03 with the daily high to beat at $17.315 with another target close by at $17.37 made this past Wednesday. If we pass that price, it will make a new high for this run and the year. The US Dollar is still the reason why precious metals are manipulated lower and with its value now at 98.12, up 11.5 points after it touched a high of 98.175 with the low to beat at 97.99. All this happened way before 5 am pst, the Comex open, and the London close.
The emerging markets currency watch shows a day of profit taking with Gold’s price, under the Venezuelan Bolivar, now at 15,226.94, barely losing 2 Bolivar with Silver priced at 171.585, a reduction of only .05 Bolivar. The Argentina Peso now has Gold now priced at 87,214.17, a reduction of 4,678.37 A-Pesos from yesterday’s count and after rising over 80,000 Pesos since last Friday with Silver now at 982.900, taking 52.09 A-Peso’s off of yesterday’s tally and after adding a total of 227.45 Pesos since last week’s closing. The Turkish Lira now has Gold valued at 8,475.13 proving a loss of 57.77 T-Lira with Silver now gauged at 95.5096 showing a cut in value of .6506 in T-Lira.
The August Silver Delivery demands shows a reduction in count of 91 leaving the demand count at 49 fully paid for contracts still waiting for receipts and with Zero Volume on the board so far today with no trading range (yesterday or) today. Silver’s Overall Open Interest now stands at 229,355 Overnighters proving a drop in count of 4,360 Obligations while keeping Silver just above the $17 mark leaving us the impression that the shorts are exiting with only 11 days left before the Sept Call Options come off the board. Of note here is the “Deep in the Money Calls” in September that tally over 15,250 options with the right to buy at $17 and below, all the way down to $7.25. In short, if a portion of these “Long Calls” are to be used to exit some futures shorts trade, then someone may be preparing for something very big and soon. Please note this is only one of many possible outcomes.