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« Silver Prices about to ‘Pop’ | Main | Europe needs more Life Boats »
Wednesday
Nov172010

Silver Wheaton Corporation Call Options Update

SLW Chart 18 Nov 2010.JPG


Two days the ago the Bears exerted some pressure pushing SLW down, however, buying towards the end of the day mitigated a large chunk of the damage as this hammer depicts. Todays action saw SLW in recovery mode as it put on 3.57%.

The steam is out of the RSI and the volume remains healthy, so its not as overbought now as it has been recently.

On the 8th November 2010 we wrote the following:

At the moment we are reasonably confident that this stock still has a long way to run and so we have purchased a number of contracts of Silver Wheaton Corporation (SLW) which are the March 2011 contracts at a strike price of $35.00 for an average price $3.31 per contract. These contracts are ‘out of the money’ as the stock closed last week at $32.95 and the price paid is all time premium. We selected March 2011 as we expect silver prices to keep motoring through until February 2011 and this gives us time for these options to improve. In terms of an exit strategy the intention is to allow this position to run, however sudden spikes either way may well test our patience. So, if you do follow us in then stay in touch for our sell signal.


These contracts closed today at $3.40 so no change there, however, they have oscillated a fair amount since we acquired them reflecting the current volatility in silver prices. For now we will hold tight and remain in a monitoring roll and take each day as it comes, even though it can be unnerving at times.


Silver Wheaton Corporation trades on the New York Stock Exchange and the Toronto Stock Exchange under the symbol of SLW.

The Company has a market capitalization of $11.37 billion, with 344.00 million shares outstanding, a 52 week trading range of $13.04 to $37.20 with an average volume of 10 million shares traded, although spikes in trading have seen 14 million shares change hands.


Over in the options trading pit the team have just updated the progress chart to include last weeks closed trades as follows:

sk Chart 14 November 2010.JPG


The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


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.



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