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« Endeavour Silver: Silver Production Up 41% Gold Up 61% | Main | Perfect-Worlders, Get Real! »

Silver Wheaton Corporation Call Options Update 05 July 2010

Silver Chart 05 July 2010.jpg

We kick off with a quick look at the metal itself where we can see that Silver prices came close to taking tea with the 200dma on Friday following a couple of down days. Hopefully the sell off is now over. The technical indicators have almost unwound suggesting the slide in prices is now over. Watch for the black line on the STO turning up, as a short term indicator this will give us a clue that silver has stopped sliding and is about to head higher.

Gold prices were hammered on Thursday, however, they did bounce back on Friday by about $12.70. We have seen this pattern over and over again, a sharp down turn in prices followed by a steady climb as it has been all the way from the $400/oz.

So, with the expectation that silver prices are about to move higher we took a look at silver Wheaton which had been sold off fairly aggressively and decided to increase our exposure to this stock by acquiring more Call Options. As you know on the 29th May 2010 we purchased some Silver Wheaton Corporation (SLW) Call Options which are the September 2010 series, with a strike price of $21.00 and we paid $1.30 per contract for them. On Friday we decided to advantage of this dip so we doubled our position for a cost of $0.95, reducing our average price to $1.12. As they say, fortune favours the brave, so its fingers crossed for us, while you guys can have a chuckle watching us wrestle with the myriad of events that will shape our thinking.

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 $18.65.

The Company has a market capitalization of $6.39 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)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

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Reader Comments (40)

Got you Mark. Well Tom, You can start with, and there is Read the Bob Chatman is the author. Checkout, and there is Go to chart school at

July 9, 2010 | Unregistered CommenterJerrold Minyard


We put this list together sometime a go, its a bit dated now but you might find it of some use:

We ought to update it, but there are never enough hours in the day.

July 9, 2010 | Unregistered CommenterSilver Prices


If you take a glance at the chart of SLW you will see that the STO has just turned upwards, which we see as a positive for the stock, still sweating though!

July 9, 2010 | Unregistered CommenterSilver Prices

I thought it was Kitco? What makes you think I don't know my gold and silver? You are not the only bug are you? I know the history. I've read it. I know all fiat currency eventually goes to zero however I am also aware that Howard Buffet warned his son about the dollar and told his son about the power of gold back in the thirties. What does Warren think of gold ? ”Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” By the way your list missed a few important one's in my book,,, ETC..ETC..

July 9, 2010 | Unregistered Commentertom

Well, Tom. You acted as thou you had no knowledge. I told you nothing personal. Kitco was miss spelled. So, what are you trying to get at????? You should not be on here with bad posture, Tom. So what is Warren saying about gold. I hear his not that bullish on the metal, but you know he owns some. Yes, I am a where of the other sights. Tom, I'm the biggest goldbug, that you will ever come across. LOL!!!!!!!!!!!! Have a good day!

July 10, 2010 | Unregistered CommenterJerrold Minyard

Stick to the game, and don't make this personal. TOM!

July 10, 2010 | Unregistered CommenterJerrold Minyard

Silver price gotta take a nap. Will discuss gold websight, and trend later today. Tom will have it together to.

July 10, 2010 | Unregistered CommenterJerrold Minyard

If we put our heads together this could be great. 10:4

July 10, 2010 | Unregistered CommenterJerrold Minyard

Sorry people. Recently got stopped out of some puts I had on SLW and then got stopped out on some calls. My timings be off as of late and we've just had a baby so my Zombie de-meaner is not doing me any favour's. Will focus.

July 10, 2010 | Unregistered Commentertom

Talk to me Tom. Got to go for a four mile walk. We are going to do this.

July 10, 2010 | Unregistered CommenterJerrold Minyard

Congatulations Tom! A little bundle of fun, worth more than all the silver in the world - get stuck in and enjoy the new member of your team.

July 10, 2010 | Unregistered CommenterSilver Prices

SLW(silver wheat). last week, SLW closed below the fifty, and bounced off the bottom of the bollinger band. To me it has started to form a bearish pattern. I feel $5.40 on SLW will be resistance before it starts back down. HL(hecla minning): The Fifty day moving average has just crossed below the 200 day moving average. This is a bearish move on silver with HL being a bell weather stock for silver. To go short and stay in the game there is a ETF by the symbbol ZSL is a silver short and will not kick you out or expire. I think its a 3x your money. If not let me know.

July 10, 2010 | Unregistered CommenterJerrold Minyard

ZSL(silver short) has been playing above the 20 day moving average on the middle of the bollinger band, and the 50 day moving average for the last week. This is a bullish sign for the shorts on silver. In three to six months it will be near or have crossed the 200 day moving average. Thats a golden cross. Very bullish. We are headed for hard times, but with the right moves, and smart observation of technical analysis we could make out like fat rats.

July 10, 2010 | Unregistered CommenterJerrold Minyard

Funnily enough in the Sunday Times this week theirs an article about Warren Buffet giving a book to his friends. It's title 'How money dies': the nightmare of the Weimar collapse, by Adam Fergusson. I know he sold his silver apparently but he must still hold his gold?

July 11, 2010 | Unregistered Commentertom

He's gotta have a volt somewhere, and I bet he didn't sell his silver. He would like for the average Joe to think so. You gotta know that Warren is connected. He's an elitest, and just like the cental bankers. They don't want you to know about gold etc.

July 11, 2010 | Unregistered CommenterJerrold Minyard

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