The Accumulator Trade 1 Update 11 January 2011
Tuesday, January 11, 2011 at 01:37AM
Silver Prices in Other, Silver Mining Companies
The first trade in this Accumulator was the Purchase 100 contracts of Silver Wheaton Corporation (SLW) March 2011, Call Options, strike price of $42.00 for $3.30 for a cost of $33,000.00, which we opened on December 11th, 2010.

As we know silver prices experienced a bout of profit taking and Silver Wheaton promptly fell out of bed taking our Call Options to the wall. Well we have watched it and are of the opinion that silver prices will soon head north along with gold prices. This action should in turn lift our favourite stock out of the doldrums and hopefully set us on course to $40.00 plus and soon.
So late in today's session we decided to average down in an attempt to salvage the situation by increasing our position, which we did with the purchase of another 100 contracts of Silver Wheaton Corporation (SLW) March 2011, Call Options, strike price of $42.00 for $1.09 thus reducing our average cost to $2.19 per contract.

We will now observe the markets and update you as and when we think that there has been a significant change or comment on any of the factors that impact on our thinking or this trade.

We have a had a good break and are pleased to be back in the saddle as 2011 is shaping up to be a volatile year for all of us. However, the coming volatility should present us with opportunities to trade so we will need to be on the ball from now on in.

Hope that you and yours also had a good one and that you are 'up' for the year ahead.

Should idea this be a disaster then its back to the drawing board for us.

Our normal trading activity will carry on as per usual.

This exercise is not part of anything that the chooses to do.

Please regard as a bit of fun where we get to sweat and you get to chuckle.

Your decisions and your operating criteria is exactly that, its yours, your responsibility, you are accountable for your own actions, so go gently with them.

Over in the options trading pit, we now have 59 winners out of 61 trades, or a 96.72% success rate. If you have any questions regarding these trades please address them through their site where they will be handled quickly and I hope efficiently.

sk chart 10 Dec 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today, before we decide to cap membership.

Stay on your toes and 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.

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