Silver Wheaton Corporation Call Options Update 24 June 2010
Wednesday, June 23, 2010 at 07:20PM
Silver Prices in Silver Mining Companies
SLW Chart 24 June 2010.jpg

As you are aware on 29th May 2010, we purchased some Call Options on Silver Wheaton Corporation (SLW) which are the September 2010 series, with a strike price of $21.00 and we paid $1.30 per contract for them. The last trade finished at $1.49 per contract on the New York Stock Exchange today, for a paper profit of 13.43%. These contracts traded at just over $2.00 last week but have fallen back again on weakness in silver prices. To generate a reasonable profit we need to see silver prices move higher from todays close of $18.54. Gold prices have also fallen back and as we write and are standing at $1237.40 with another go at its historic high required.

A quick look at the chart shows us that SLW has failed in its attempt to break new ground this time. The STO has turned down which we hope is only temporary as we are expecting silver to bounce back in the near term and also to finish the year a lot higher than it is now. We doubt that precious metals will suffer from the summer doldrums as the desire to keep running the printing presses remains more or less intact, thus the paper money supply continues to be inflated. However, should silver prices fail to head north then we will need to consider pulling the pin on this position on SLW Call Options.

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 $20.36.

The Company has a market capitalization of $6.98 billion, with 342.75 million shares outstanding, a 52 week trading range of $7.12 to $21.58 with an average volume of 5-6 million shares traded, although spikes in trading have seen 14 million shares change hands.

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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