Silver Wheaton Corporation Put/Call Ratio
Wednesday, June 2, 2010 at 07:50PM
Silver Prices in Silver Mining Companies
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Silver Wheaton Corporation (SLW) options saw interesting call activity today. A total of 1,164 put and 5,880 call contracts were traded raising a low Put/Call volume alert. Today's traded Put/Call ratio is 0.20. There were 5.05 calls traded for each put contract, according to Market Intellisearch.

With any technical indicators we must take care not to place too much reliance on just one of them, but to try and consider a number of them before making an investment decision. This snippet goes on to say 'Thus, unusual volume provides reliable clues that the stock is expected to make a move' but note that it does not say in which direction the stock will move, but, judging by our mail bag you are expecting SLW to head north. Try to remember that when someone buys a Call Option there someone else standing on the other side of that trade who is equally as confident that the stock is about to head south. So the purchase of a greater number of Call Options can sometimes be mis-leading. As it is we also think that SLW is heading higher for reasons that we have explained when we purchased some Call Options recently. Anyway the remainder of this article reads follows:

Options are useful tools for predicting the movement of the underlying stock. Put/Call ratio statistics serve as a useful predictor of investment sentiment, indicating what experienced investors are doing in preparation for a move of an underlying stock. Thus, unusual volume provides reliable clues that the stock is expected to make a move.

Silver Wheaton Corp. (SLW) closed at $18.58 in the last trading session and opened today at $18.48. SLW is trading at $19.10, up $0.52 (+2.80%) in today's trading session. The daily low is $18.32 and the high is $19.10. The trading volume of 5,221,634 is below the average volume of 6,965,050 shares. SLW is trading above the 50 day moving average and higher than the 200 day moving average. The stock's 52 week low is $7.12 and 52 week high is $21.58.

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

Have a good one.

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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.

Accumulated Profits from Investing $1000 in each OPTIONTRADE signal 14 May 2010.jpg

Recently our premium options trading service OPTIONTRADER has been putting in a great performance, the last 16 trades with an average gain of 42.73% per trade, in an average of just under 38 days per trade. Click here to sign up or find out more. have been rather fortunate to close both the $15.00 and the $16.00 options trade on Silver Wheaton Corporation, with both returning a little over 100% profit.

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