SOLD -5 SLW 100 DEC08 7.5 PUT @4.00 LMT

[caption id="attachment_515" align="aligncenter" width="500" caption="mini Silver"][mini Silver][][/caption]

[caption id="attachment_516" align="aligncenter" width="500" caption="SLW"][SLW][][/caption]

Wrote some puts on Dec08 of SLW at 7.5 strike price. Fee \$7.5.

Upside: Volume on the rally from the low has been consistently high. Price of silver looks as though it has seen the low for now. Note the volume graph on 15-min YI price, the retest of last Friday's high occurred at lower volume, marked by yellow line.

Resistance: \$4 first, then primary at \$5. Next up is \$9 - \$10.

Downside: Week prior to election, rally not supported by volume on overall market. Earnings report on Monday. Commodities under pressure.

Support: \$3.

Bottom Line: Can't say for sure if we're at the bottom yet. The sentiment is definitely turning. By now til late December, SLW and the overall market should make a sizable rally. I will unload this then.

Stop: If on expirary I'm being put to, then I might just pony up the cash and buy the shares. Effective share price will be \$3.5.

[mini Silver]: http://traderpau.files.wordpress.com/2008/10/2008-10-30-yi.png [SLW]: http://traderpau.files.wordpress.com/2008/10/2008-10-30-slw.png