Today we purchased the JAN09 Call options at a strike price of $10.00 for $1.00 per contract for the Hecla Mining Company. As we can see from the chart the stock appears to be oversold having been sold down from the $13.00 level to close at $8.28 today.

Taking a quick look at the chart for silver we can see that silver appears to have found support at the $16.50 level and should be further supported by the rising 200dma. The technical indicators are turning positive which could result in a shot-term rally, hopefully boosting Hecla along the way.

This trade forms part of our strategy to deploy our opportunity cash into the precious metals sector before the end of August.

Hecla Mining Company trades under the symbol of HL on the New York Stock Exchange, has a market capitalisation of $1.05 billion, a P/E of 17.91 with an average of 2.95 million shares traded.

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