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« Hecla Reports Quarterly Record Cash Flow of $32.3 Million | Main | US Dollar sliding down the wall of worry »
Thursday
Oct292009

Silver Standard Resources Incorporated: Picked Up a few Call Options

SSRI Chart 30 Oct 09.JPG



Today we purchased the December 2009 series Call Options on Silver Standard Resources Incorporated (SSRI) with a strike price of $25.00 (IZULE) for $0.30 per contract. The trading range for the day was $0.29 to $0.35 with open interest standing at 1428 contracts.

The technical indicators are in oversold territory at the moment as SSRI has dropped from $23.00 to $19.00 over the last few weeks as the above chart depicts, so we took the plunge and purchased a few Call Options. Also note that the stock price has returned to penetrate the 200dma, however, it recovered to close just above it yesterday. The upside now looks to be a greater possibility than the downside, so time will tell.


We believe that the current pull back is a breather for silver which has been doing extremely well of late and we expect silver and the associated quality silver producers to resume the trek north, starting today.


Have a good one.

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Reader Comments (9)

hmm, i see the bottom for this thing within 10 or 14 days (short term bottom)

October 30, 2009 | Unregistered CommenterDi

I purchased when you put this out a couple of weeks ago at a buy at much higher levels. Down 80 percent right now. Hopefully it will storm back. May pick up a few more here...

October 30, 2009 | Unregistered CommenterGary

OK, I went with CALL SILVER STRD RES F$22 EXP 12/19/09.

What would be a good exit strategy?

November 4, 2009 | Unregistered CommenterDoug

Doug,

We are not financial advisers so we cannot advise you as an individual and we do not know your circumstances, aversion to risk etc.

However, we can talk about it in general terms, so here goes:

1.Now that you have made a purchase decide on a realistic profit that you would be happy with and place the sell order now and wait for it to be realized.
2.Should it all turn to custard then how much damage are you prepared to take, decide now on what you are prepared to lose and if your purchase drops to that level then sell it.

Its all about discipline and I have to say that we are not good at it but there is no reason why you cant be good at it.

Good luck with it.

November 4, 2009 | Unregistered CommenterSilver Prices

Di,

Do you intend to buy in 10 to 14 days time and what price do have in mind please?

November 4, 2009 | Unregistered CommenterSilver Prices

No I bought IZULO.O @ .60 on Friday, just trying to gauge what parameters you might work with as far as taking a quick profit or riding it out for the possible year end surge in Ag...

November 4, 2009 | Unregistered CommenterDoug

Bob, wonder what your thoughts are on the SSRI - izuke $25 Nov 21 Calls. You mentioned you bought some as well. I bought 4 contracts at $.40 and they havn't moved. Just wondering why you would buy so far Out Of The Money, SSRI hasn't been much above $23 recently, thanks for all your e-mails,

November 10, 2009 | Unregistered CommenterR

R, Still expecting SSRI to move higher, it put on 3.5% today so we need more of the same and fast.

November 10, 2009 | Unregistered CommenterSilver Prices

Hi once again Bob, well Silver and Gold have moved up nicely since we last were in communication. Silver up from 14.00 and gold up from 940.00.

Well, I have to say things turned out very well with my investments in SBT.UN and SBT.WT since I talked to you about it. Got in on the Units at 10.50 and the warrants at .50. They closed today at 12.00 and 1.33. HIghs of 12.50 and 1.70. Units up 14.3% and warrants up 166% (a good return on a small investment in comparison to buying the actual units and risking more money).

On October 9th, thinking that there may be other opportunities to invest in other Silver companies with warrants, I did some research and discovered some other companies (not all silver) as follows:

Platinum Group PTM.WT Exercise Price 1.75 Dec. 16/10 Price Oct. 09th - .25 Nov. 9th - .39 Nov. 11 - .405 increase 62%
First Majestic FR.WT.B 3.50 Mar. 05/11 .91 1.07 1.20 31.9%
Endeavor Silver EDR.WT 3.60 Oct. 07/11 .81 1.27 1.24 53%
ECU Silver ECU.WT .95 Feb. 20/14 .24 .36 .365 52%
USA Silver USA.WT .155 July 16/14 .15 .13 .15 even
Breakwater Res BWR.WT.A .12 April 9/14 .25 .245 .235 -6%

I purchased warrants in ECU on Oct. 6th at .22 which are up a nice 66%. Today I purchased warrants in BWR at .24 and USA at .15 and hoping that these will do as well. Breakwater has several operations around the world and are involved in exploration and production of Base and precious metals. They have several zinc mines in operation.

My feelings are that when the economies around the world start to recover and with the precious metals doing so well right now that these warrants could turn out to be very good investments. I am particularly interested in USA Silver as they seem to be in a very good cash position and they do have good production. I also like ECU as they recently started to pour their first silver bars. I was wondering if you could give me your thoughts on the above.

November 12, 2009 | Unregistered CommenterR

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