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« Silver Prices Update 08 April 2010 | Main | League Table Q1, 2010: USD, DJIA, GOLD, SILVER, GDXJ and the HUI. »
Monday
Apr052010

Silver Wheaton Corporation Update 06 April 2010

SLW Chart 06 April 2010.JPG


On the 11th February 2010 we purchased Call Options on Silver Wheaton Corporation (SLW) when we wrote:

Just a quick note to let you know that in todays trading session in NYC we bought some Call Options on Silver Wheaton Corporation (SLW) and they 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 of today they closed in NYC at $2.31 and $1.67 respectively.

As we can see from the above chart SLW started well and then we went down briefly and now we are heading north once again. The three higher lows along with three higher highs add to our confidence that SLW can continue to higher ground. The 200dma is also trending north and supporting SLW in its current rally.

Everything depends on silver of course, which has fallen slightly since the close on the NYSE but otherwise is going great guns. Silver prices tend to move with gold prices which in turn are influenced to a large extent by the oscillations of the US Dollar. However it appears to us that both silver and gold prices have stood up well during the dollars rally and at some point down the line they will decouple from the dollar and head north regardless of what the dollar the does.

Options are not for the faint hearted so go very gently with them.



Just to re-cap we suggested acquiring this stock 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 $16.80, so its up 16.8% in just under two months and hopefully there is more to come.


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 $16.80.

The Company has a market capitalization of $5.75 billion, with 342.54 million shares outstanding, a 52 week trading range of $7.07 to $17.80 with an average volume of 5-6 million shares traded.



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