Limited Risk - High Leverage Potential
by Richard J. Maturi
Interested in an investment opportunity with known limited risk and high leverage profit potential?
Then silver options may be right for you. Many investors shy away from gold and silver investment
vehicles for fear of margin calls and forced liquidations, and others consider options too complicated to
understand. But both fears are unfounded when dealing with options.
An option is a contractual obligation of the grantor (the one offering the option) which gives the option
purchaser the right, though not the obligation, to buy from or sell to the grantor a specified amount of a
commodity at a specified price (called a "striking price") before a specified time and a specific date
(called the "expiration date").
There are two types of options. "Calls" give the holder the right to buy the underlying commodity at the
striking price before the expiration date. "Puts" give the holder the right to sell the commodity at the
striking price before the expiration date.
Silver options offer the following advantages over other silver investment vehicles: