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« Silver Wheaton Corporation Call Options Up 59.88% since November 8th, 2010 | Main | An Accumulator? »
Sunday
Nov282010

Silver-Prices.net Portfolio Update 30 November 2010

We have not updated our portfolio since 14 January 2010 which is remiss of us but just shows that time flys when you are having fun. The major change in strategy for us has been to recognize that Silver Wheaton Corporation (SLW) was outperforming in the silver space and so we reduced our exposure to some of the other stocks that we own in order to acquire more of SLW and to generate cash for a foray into the options market. This is being done via the occasional trade on each our sites, however, the lions share of the trades are now being conducted via www.skoptionstrading.com.


Here is a summary of the silver stocks that we currently hold:

Hecla Mining Company (HL) – Initially we bought this stock for $5.27 - a quality silver stock which was going along nicely and then we thought Hecla was overbought, as it hadn’t corrected with other silver stocks, we took profits on Hecla at $11.89, the stock price then dropped so we bought it back at $9.72, getting a 18% discount on our shares. On the 14th April we sold 50% of this stock for $11.79 in order to lock in some profits as we anticipated a fall.

On the 18th June 2008: we re-purchased Hecla’s shares for $9.61. Hecla has traded as low as $0.99 and closed at $8.80 recently. Hopefully Hecla can continue to improve.

August 10th, 2010: We sold 90% of our stake in Hecla Mining Company (HL) for an average price of $5.08 and redeployed the funds by acquiring more of Silver Wheaton Corporation (SLW) stock for an average price of $19.76.



Pan American Silver Corporation (PAAS) – Initially we bought this stock for $18.00 and on the 23rd August we gave another BUY signal on PAAS when we said “We made a further purchase today at $24.10” giving us an average purchase price of $21.50. On January 31st, 2008 we sold about 50% of our shares for an average price of $36.65, locking in a profit of around 70.32%. On the 18th June 2008 we re-purchased PAAS shares for $31.06 and on 16 July 2008 we made another purchase at $36.53. PAAS has traded as low as $8.93 and was standing at $18.55 at our last update so some improvement has taken place as PAAS recently closed at $36.02.

August 12th, 2010: We sold 80% of our stake in Pan American Silver Corporation (PAAS) for an average price of $23.05 and moved the proceeds onto the sidelines for redeployment into various options trades.



Silver Wheaton Corporation (SLW) – Originally bought this stock for $9.41 and made another purchase on 15 July 2008 at $15.61 and a further purchase on 6 August 2008 at $11.43.

Having raised cash from our sales we made another purchase on the 9th August 2001 at $19.76 and thankfully SLW closed at $35.15 recently. This is now our biggest holding, showing an average gain of 140% on this stock.




Silver Standard Resources Incorporated (SSRI) Initially we bought this stock for $19.98 and on the 20th August we gave another BUY signal when we wrote “we think Silver Standard is at a good level to buy at the moment and we bought today at $28.99” giving us an average purchase price of $24.48. On January 31st, 2008 we reduced our exposure by selling around 50% of SSRI for an average price of $34.82 locking in a profit of 42.22%. SSRI dropped to $7.99 during in the sell off but recovered well to trade at $19.16 at the time of the last update and it closed at $25.59 recently.


Eagle Plains Resources Limited (EPL) – We bought this stock for around $0.53, it has been down to $0.08 but closed at $0.24, at the last update, last week EPL closed at $0.24. Not good enough, we'll observe a little longer.


Endeavour Silver Corporation (EXK) – We initially bought Endeavour for $3.97 and on 7th December 2007 we bought more shares saying; “EXK is down from over $5.50 and as it has been beaten down so much we are signaling a BUY again on this stock and we made a further purchase bringing our average price to $4.10 per share as we doubled our position.” we secured more EXK for $3.26 on the 2nd April 2008. Great results and the ability to do what they say they are going to do have propelled this stock northwards from $1.75 in September to close at $4.28 at the time of the last update.

August 11th, 2010: We sold 50% of our stake in Endeavour Silver Corporation (EXK) for an average price of $3.33 and moved the proceeds onto the sidelines for redeployment at a later date. Endeavour closed last week at $6.04.

Minco Silver Corp (MSV) - Bought for $2.80 as a speculative move, it later dropped to trade at $0.40, which hit us hard, however it has been showing signs of recovery during and during the last update it traded at $2.00, however, it closed last week at $6.72, much to our relief.

Traders Corner:

A brief summary follows:

August 28th, 2010: We are pleased to report that today we closed our Call Options on Silver Wheaton Corporation (SLW) selling half of them for $2.00 at around 3.15pm EDT and the other half a little later for $2.02. We paid an average price of $1.12 so we managed to generate, or scramble, depending on your view point, a profit of 79.46% on this trade.

October 25th, 2010: We paid $0.18 per contract back then and sold them today for $0.20 which gives us a small profit of 11.11%, nothing to write home about, but we now have our cash plus a few more dollars back on the side lines.

November 2nd, 2010: Just a quick note to let you know that we have decided to take profits today and have sold all of our Call Options on Silver Wheaton Corporation (SLW). The profits were too good for us to refuse so we are taking the cash and going back to the sidelines.
We had four tranches as follows:

December 2010 $26.00 Calls @ $1.55, now at $4.20 for a gain of 170%
December 2010 $30.00 Calls @ $0.58, now at $1.81 for a gain of 212%

and

January 2011 $26.00 Calls @ $2.00, now at $4.75 for a gain of 137%
January 2011 $27.00 Calls @ $1.64, now at $4.10 for a gain of 150%

November 18th, 2010 We purchased 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 

This position is still open and these contracts closed last week at $4.15 for a paper profit of 27.85%.

So there we have it.


In the next update we will probably delete all the history as its old hat now and we will try and keep it short and sweet.

The idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on has generated some interest so we will get our act together and give it a shot. If you would like to comment on this idea, then please click here.

Over in the options trading pit the team have are updating the progress chart to include closed trades, now 53 winners and out of 55 trades, having been stopped out of a trade with a profit of 41.84% made in just 8 days.

sk chart 19 Nov 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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