Yes, it is quite risky trading way-out-of-the-money options in a high-beta market such as silver right now.
Even if you are correct about the overall move if your timing is off even just a bit you could end up losing your premium very quickly...that is why it is best to average in over a time period around the expected drop, and be prepared to lose all of you option investment for a stab at VERY high profits...therefore you would only use a small portion of your account balance for such a trade...
That being said, I have never made so much money as I have recently doing this very thing as silver approached $50 ...averaging in puts...and now we should be do for a second leg down as the bounce was very flat....
And rabbits chart, even if there is just a 'rhyme' to the time period to the rollover matching the '80 scenario...should be extremely profitable...even if we just drop to $28 in the next 3 weeks...$1400 (28 points) invested in a 32 put such as when I suggested it will yield approx 500 points...400 in-the-money with at least 100 tacked on for time premium and volatility... $25,000....that's just for a drop to $28 ...
Now if the charts pattern matched perfectly (which I do NOT consider likely although it is indeed possible)...well...that chart shows a drop straight to $12 ....which would equal the difference between 32-12 = 20 ....20 X 100 pts = 2,000 points X $50 per point....which equals $100,000 ... for a $1400 investement...
If you wanted to risk much less, a $28 put was (still is only 12 pts or so) 8 pts... $400...and a drop to 28 even though not in-the-money would yield close to 200 pts (or $10,000!) just for the volatility of the drop and the premium! IF it happens soon, in the next week to week and a half...
Now if the market matched the pattern perfectly, again, the difference of 28-12 = 16...16 X 100 is still 1,600 pts or $80,000....for a $400 investment....in a $28 put...
What is that...like a 20,000% profit? lol.... again, not likely, but you cannot say it is impossible, and there is a VERY GOOD chance in my mind it WILL correct down to $28 MINIMUM and even $20 is very possible which would yield $40,000....
It IS a gamble of course...but to me it sure beats the HELL out of throwin' down yer money on a roullette wheel...because the odds are many many many times better on chart pattern recognition...look how well it worked just looking back to '80 on the initial drop and doing the same thing with options just a month ago? I paid $1,200 for an option that yeilded about $14,000...(over 1,000% percent profit) and I was not patient nearly enough! it WOULD have yeilded close to $26,000 if I would have just waited 3 more days! LOL!
I LOVE repeating chart patterns/chart pattern recognition, it is my bread and butter.
Sorry for the long post, but I hope I helped with some of my personal experience with options and this drop so far...
And my anticipation of a possible continuation....per rabbit's observations of this synchronicity in charts between now and '80....
Cheers! 
