SOLD -3 SLW 100 DEC 08 5 PUT @1.55

[caption id="attachment_634" align="aligncenter" width="500" caption="SLW"][SLW][][/caption]

Short puts on Dec SLW stroke 5 for \$1.55.

Upside: The move from \$4 to \$3.78 was low volume and \$3.78 is a support level from yesterday. S&P also dropped from 940 to 920 and stayed there for a bit on low volume.

Resistance: \$4

Downside: Silver price down slightly. Market in short term down trend.

Support: \$3.7.

Bottom line: This is a short term trade with a small position to test the water. Mental stop is S&P 916.

Update: S&P dipped to 913 briefly then returned to 917 level. I was hungry so I went to lunch and left this as is. S&P is back to 920+ level after an hour. I think I will let this play out without hugging the monitor every minute. I've got other work to do.

[SLW]: http://traderpau.files.wordpress.com/2008/11/2008-11-07-slw2.png