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« In the Shadow of the Castle | Main | USD is Struggling to Rally »

Silver Wheaton Corporation Call Options Update 18 March 2010

SLW Chart 18 March 2010.JPG

Just a quick note to update you on the Call Options that we purchased on Silver Wheaton Corporation (SLW) which are the JUNE 2010 series at a strike price of $15.00 and $16.00, for which we paid a price of $2.02 and $1.60 respectively per contract.

As we write these contracts are trading at $2.17 and $1.59 respectively, so having dipped below water after we acquired them, they are now moving in the right direction. Silver Wheaton is up 2.77% today for a gain of $0.44 to $16.31 on the back of silver which is up to $17.47.

The US Dollar has been trying to rally without success however, it is still clinging on, just below the '80' level which in turn is hampering golds move north and so on, as we suggested when we posted an article on the 11th February 2010, entitled: Silver Wheaton Corporation: Buy This Dip, when SLW stood at $14.38, today it stands at $16.31, so its up 13.4% in just over a month.

We are holding on tight to these options as they are now 'in the money' which means that they are both above their respective strike prices and should move, more or less, dollar for dollar if SLW can continue to make progress from this point.

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 $16.31.

The Company has a market capitalization of $5.57 billion, with 341.28 million shares outstanding, a 52 week trading range of $6.15 to $17.80 with an average volume of 7-8 million shares traded.

Have a good one.

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Reader Comments (6)

when folks will understand that dollar shorts will not last forever ....

March 18, 2010 | Unregistered CommenterDi

When will you answer my question, Di? It doesn't seem to be an unreasonable request. We're waiting.

I'll try a third time.


I’m confused. You said the following on Feb 17:

“take profits guys, because i am short silver again today after being forced to take profits at 15.80 . not sure if it can go higher than 16.30, maybe, but certainly not above 16.50 … next week it is going to be a bear party again, and i hope in march we are going to kiss & goodbye to above 1000 gold prices

Comment by Di — February 17, 2010 @ 1:15 pm

Am I missing something? Silver’s been trading well over $16.50 for weeks. You said it was CERTAIN that couldn’t happen and that prices were set to tumble. I think we all deserve an explanation.

Just curious. Have you covered that short position? If not, at what higher price would you cover? Now that silver has reached its recent high of $17.65, how much higher can it not possibly go?

March 18, 2010 | Unregistered Commenterfallingman


The credibility of your your future commentary will carry less weight if you continue to ignore the above request, can you give it a shot, please.

March 18, 2010 | Unregistered CommenterSilver Prices

Sorry, falling man, i am not following coments too often. But yeah, i did cover. Now i have my core short position underwater for about 1 buck against me, and minimum loses on some shorts after break above 16.50 but that's not a problem. I am thinking to short agressively next week. I don't think it is going to go above 17.60, that's very difficult. I have my projections but who knows (really) when the market is going to do the wild selling, though they have to. It is very easy to short these days, check how quickly it falls and how long it takes to recover, this is a new bear trend, not continuation of the old up trend. I think we are going to sell tomorrow, and recover on sunday/monday, and from tuesday start saying 'bye-bye' to above 1000 gold prices. (my plan is to break 1000 level in march, hope so)

March 18, 2010 | Unregistered CommenterDi

I started to short silver with the ETF zsl. I had to change my mind. There is still some play in this over bought position. Its not quite ready to drop yet. I'm very interested to see the candle stick formation Silver Wheat for March 18, 2010. I think that will tell some of the story.

March 19, 2010 | Unregistered CommenterJerrold Minyard

The symbol that appears in the candle stick formation for Silver Wheat is the Harmi bear. I feel the run my be over For silver. This is Friday. Watch silver closely. I feel it will close down. Friday or Monday start buying your shorts. The chart that appears in this article is March 17, 2010. So, time is a factor. You still may see a little pop from silver.

March 19, 2010 | Unregistered CommenterJerrold Minyard

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