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« Perfect-Worlders, Get Real! | Main | Silver Wheaton Corporation Call Options Update 24 June 2010 »

Silver Wheaton Corporation Call Options Up 38.55%

SLW Chart 29 June 2010.jpg

A quick update on the Call Options that we purchased on the 29th May 2010 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 $1.81 per contract on the New York Stock Exchange today, for a paper profit of 38.55%. These contracts traded at just over $2.00 recently but have once again 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 $18.76. Gold prices have also fallen back and as we write and are standing at $1238.00 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, however the formation of this ascending triangle should be positive for SLW resulting in a breakout to the upside. The STO, which we mentioned in the last update as it was heading south, has turned up again and hopefully can go a little higher from here. The RSI and the MACD also still have some room to move higher, we just need something of an ignition at this juncture.

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 $7.20 billion, with 342.75 million shares outstanding, a 52 week trading range of $7.12 to $21.89 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.

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.

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.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

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