Silver Wheaton Corporation Options Trade Up 25%
Thursday, August 6, 2009 at 07:26PM
Silver Prices in Silver Mining Companies
SLW Chart 07 Aug 09.JPG



Chart courtesy of Stockcharts



As we can see from the above chart our options trade has started well as Silver Wheaton Corporation (SLW) dropped 3.42% yesterday, resulting in a 25% rise in the PUTS. We purchased the August 2009 $10.00 PUT Contracts (SLWTB) for an average price of $0.375 per contract and they closed today at $0.50.



These options expire on the 22nd August 2009 so we will need to sell them shortly and hopefully for a small profit.

Going back to the chart note that the gap between the stock price and the 200dma is still fairly wide with the stock price standing at $9.88 and the 200dma standing at $6.95. Also note just how quickly this stock can move from the $7.00 level to the $11.00 level and back again. This sort of volatility offers opportunities for those of you who are active traders and some sleepless nights for the longer term investors. Thats life in this tiny sector so recognize it and hold fast as the oscillations become wilder as we move towards an explosive fall.

Have a good one while we sweat it out.

Silver Wheaton Corporation trades on the New York Stock Exchange and the Toronto Stock Exchange under the symbol of SLW and is currently trading at $9.88. The Company has a market capitalization of $3.08 billion, with 311.80 million shares outstanding.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.
Article originally appeared on Silver Prices (http://www.silver-prices.net/).
See website for complete article licensing information.