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« Silver taking a breather | Main | Silver Standard Resources Limited in the Frame »
Thursday
Oct082009

Silver Standard Resources Incorporated Worth a Few Calls

SSRI Chart 09 Oct 09.JPG

Today we tried to buy the December 2009 series Call Options on Standard Resources Incorporated (SSRI) with a strike price of $25.00 (IZULE) however our extravagant bid of $1.55 was not filled. The trading range for the day was $1.55 to $1.65 with 65 contracts traded with open interest standing at 1202 contracts. Not to worry will leave our bid on the table and re-assess the situation again tomorrow.

This trade is based on our expectation that both gold and silver will finish the year a lot higher than they at the moment, an opinion that we have held for a long time. Yes indeed time is running out as the local shops are now pushing Christmas ideas so we are well aware that we are in a count down situation. Does that bother us, you ask, well theres nothing like a sprint to the finishing line to get the adrenalin going and thats what we are counting on as this tiny sector gains more and more recognition and creditability.

Also a big thanks to those of you who emailed us letting us to let us know that you bought Call Options based on our recent assessment of Silver Standard Resources Incorporated which are now showing a good profit. However we cant really help you with a 'sell' strategy as we are all different and have differing aversions to risk and unique financial circumstances. All we can say is set a sell price that you think is achievable which generates a profit that you are comfortable with and place the 'sell' order and relax.


Now, a quick look at the chart we can see that the MACD has just formed a golden crossover which is a positive sign and very encouraging, although it has to be said that non of these indicators are totally reliable. SSRI has made good progress and we hope to see SSRI build on these gains and trade a lot higher over the next two months.

A warm welcome to 128 new subscribers who have joined us in the past fortnight, we hope that you enjoy our venture into the silver market and make a few bucks along the way.

Have a good one.

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Reader Comments (6)

Do you think this is a good time to pick up some shares for longer term holding, or wait to see if it drops back a little more? Thanks.

October 9, 2009 | Unregistered CommenterDiana

We managed to acquire some contracts today at $1.55, the current trading range is $1.40 to $1.60, so its fingers crossed.

October 9, 2009 | Unregistered CommenterSilver Prices

D,

Many moons ago when gold prices were just above $600/oz we wrote an article saying that we will never see $600/oz again and we received the same questions that you have about buying now or waiting for dips. If you are new to the silver market then we would suggest that you do a lot of reading and as widely as possible, facts, figures and history on Endeavour's (EXK) site is a good source of information.

We would also suggest layering as a strategy, buying a few stocks at a time and building up slowly after you have acquired some of the physical metal. However we are not financial advisors and can not give individual financial advice so always check with your registered professional advisor when formulating your strategy.

October 9, 2009 | Unregistered CommenterSilver Prices

Silver Standard reached a high of $43 in November 2007 . Can this be breached? Should we take profits if it retraces to this level or should we sell out before this?

October 11, 2009 | Unregistered Commentersilver bug

silver bug,

Yes we think it can be breached but we will need to do a fair amount of work when we get closer to that time. Also remember that we are very positive and optimistic about future silver prices, which may not be the right mindset to hold, so read as widely as you can in order to formulate a balanced view on the subject.

October 11, 2009 | Unregistered CommenterSilver Prices

Have you got a price in mind that you will sell at?

I have some HL and SLW options . My problem is knowing when to exit.

TIA

November 4, 2009 | Unregistered Commenterrich

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