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« Wall Street: Money Never Sleeps | Main | Endeavour Silver Corporation: On Track to Beat Production Forecast »
Friday
Oct082010

Silver Wheaton Corporation Compared to Gold, Silver and the Indexes

SLW Chart Compared withother Indexs 09 October 2010.JPG



Since revamping our strategy and going overweight on Silver Wheaton Corporation (SLW) we are pleased to see that it has been outperforming gold, silver, the HUI and the index for the junior stocks. Also note that the gold bugs index, the HUI, is managing to keep pace with gold prices, but does not, as yet, reflect the leverage that we would like to see. There is also a general mantra of juniors, juniors, that in our humble opinion is a little early in this cycle. As the chart shows these stocks have outperformed gold prices, which is their underlying asset but they have not kept up with silver prices and have lagged behind Silver Wheaton by a fair margin over the last two months or so.

Its so far, so good with our strategy, however, we do need to keep an eye on some of the other silver producers, such as Endeavour Silver and Pan American Silver both of which have been putting in sterling performances, excuse the pun.

Our strategy now needs some refinement. The additional SLW stock that we bought is progressing nicely so we will stick with the trend and hold on to these shares. However, some of the Call Options that we have acquired are now 'in the money' and as such will not gain as much in percentage terms as some of those Call Options which are 'out of the money'. Assuming we get the explosive finish to the year that we are anticipating. So, we will work through these issues over the weekend and see what we can come up with in order to maximize our profits. We will of course post any changes we make and publish any sales or disposals that we make if and when we do decide to move.

The strategy remains the same its fine adjustment to the tactics that just might be required.


Meanwhile, over in our options trading den they were stopped out of one trade last night for a profit of 33%, having closed a trade the night before with a profit of 82% which follows the recent success of closing a trade which generated a profit of 50% in 30 days on GLD Call Options, so they now need update their progress chart, yet again, which will probably be done this weekend as things are a little hectic at the moment. However, to see exactly how it is going, please click this link.


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

On Friday, 27th August 2010, we closed another successful trade banking a profit of 79.46% on Call Options on Silver Wheaton.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09. On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days, with more positions opened yesterday. Drop by and take a look.


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. (Winners of the GoldDrivers Stock Picking Competition 2007)

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