BOUGHT +5 SLW 100 DEC 08 7.5 PUT @3.40

SLW

Silver

Covered my short puts SLW @ $4.00 for $3.40 today. Fee $7.50.

This is to reduce my risk on the current weak precious metal market. Silver is failing to break above $10.6 so far. Gold is down $14 or so to below $750, an important support level.

The weakness seen today after the election is likely a shakeout for an imminent rally. However, my leveraged position in SLW is too risky due to weakness in both the equity and precious metal markets, even for the short term. So I’m unloading it for now to wait for a re-entry. My strategy with the options is to hold it as short as possible for the most profit. So I’ll be taking swing positions and trade in and out.

In any case, I still have my SLW shares to ride the wave if we do make a move.

Update: S&P is down 33 to 972 from around 988 when I sold. Yet, SLW is holding up nicely. This is a very good sign for SLW.

Related posts:

1. BOUGHT +120 SLW @5.73
2. Bought 3 PAA.TO 10DEC Puts 25.00 @ $2.27, Mark $24.75
3. BOUGHT +4 DELL 100 DEC 08 13 PUT @1.80
4. SOLD -120 SLW @2.90
5. Bought 250 VEN.TO @ $6.93