Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Silver Prices
Silver Price
[Most Recent Quotes from] Our RSS Feed

Silver Updates by Mail

Enter your email address:

Follow Us on Twitter
« First Majestic Silver Corp Up 25% since recommendation on the 9th Feb 2011 | Main | The Accumulator Trade 1 Update 02 March 2011 »

The Accumulator Trade 1 Update 03 March 2011: Position Closed

In todays trading session we sold the remaining 50 Call Options on Silver Wheaton Corporation (SLW) for $2.72 per contract. These are the March 2011, Call Options, at a strike price of $42.00 for which we paid an average cost to $2.19 per contract, so today’s profit was in the region of 24%.

In total then we have the following:

100 contracts sold for a profit of 5%
50 contracts sold for a profit of 32%
50 contracts sold for a profit of 24%
The average return is 16.5%.

This trade spent most of its time under water as silver prices were sold off fairly aggressively during the period that we have held them. We did average down in the belief that we could catch an upturn and had to sweat it as prices headed south. However, with time running out on this trade we were in danger of a total wipe out so decided to take some of our cash off the table when it first showed a small profit as safety precaution and so we sold half of the position for a 5% profit. We then followed up with another sale for a profit of 32% and finally today we closed out this position for a profit of 24%.

These call options are 'in the money' and you may wish to let them run a little longer and that’s your prerogative and good luck with it, if you choose to go that way.

This has been a very difficult trade to handle, real messy at times, so we hope that trade number two will be a cleaner buy and sell move.

PS: Just in case you missed it we have just closed an option play on with an average profit of 96.5% on Silver Wheaton Call Options. Click here to read more.

Many thanks to those of you who have recently signed up for options trading service, its very much appreciated. Please be patient as we have a number of new trades on the drawing board and as you are aware the timing of them is critical to their success.

We now have 65 winners out of 67 options trades, or a 97.00% 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 19 Feb 2011.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.

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.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (4)

I just closed out my trade. I averaged down to 50 contracts @ $0.89 per. I sold 25 @ 2.85, 15 @ 3.40, and 10 @ 3.55. That is roughly a 250% profit on my total position.

March 4, 2011 | Unregistered CommenterBee Thousand

Well done, its always a boost to get good news from one of our readers.

March 4, 2011 | Unregistered CommenterSilver Prices

I must say, I thought SLW underperformed the metal. With $35 silver, I thought SLW would at least hit $50. Maybe it will next week and I left money on the table:)

March 4, 2011 | Unregistered CommenterBee Thousand

Our target remains unchanged at $100.00.

However, the chart looks rather oversold at the moment, so its a battle between the technical indicators and the fundamentals.

March 4, 2011 | Unregistered CommenterSilver Prices

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>