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Posts Tagged ‘SLW’

Update – Silver Wheaton (SLW)

Posted by mounddweller on May 20, 2012

Fellow Traders,

Here’s another update, this time on my position in Silver Wheaton (SLW).  You’ll recall I entered this trade on April 27th by buying 200 shares of SLW at $30.07 and selling two MAY $29 puts at $0.64.   This was my second trade using Ron Groenke’s new “Show the Trade”.  Like my CVX trade, it isn’t working out too well right now.  As a matter of fact I’ve already hit the stop loss limit on my long stock.  Back on May 7th the stock fell through my stop loss at $28.56.  By the time I sold it was at $27.45.  It subsequently fell to as low as $22.94.  It has since recovered a little, closing Friday at $24.63.  Thus, my use of a stop loss benefitted me greatly on this trade.

Like my CVX trade I decided to roll out and down my short puts.  On Friday I rolled my MAY $29 puts out to the SEP $28 puts for a net credit of $129.65.  This now leaves me a net loss of $293.40.  My plan is to continue to roll the puts as necessary to bring the whole trade to a profitable conclusion.

Here’s a current 1-year chart for SLW.

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Posted in Portfolio Updates | Tagged: , | 2 Comments »

New Trade – SLW

Posted by mounddweller on April 27, 2012

Fellow Traders,

Believe it or not I placed another new trade today.  Hard to believe isn’t it.  My trading had slowed way down.  Primarily for two reasons, (1) I didn’t trust the market, and (2) everything I wanted to trade had run up in price beyond what I was willing to own it at.

So, what changed?  Well, to be honest, nothing really.  I still don’t trust this market and there just isn’t much that I like at these prices.  However, I finally said I have to do something, I can’t keep all of my money in cash, not if I want to reach my retirement goals.  So, I decided to give Ron Groenke’s new trading system a try.  As I mentioned in my post yesterday, Ron has had great success with his new “Show the Trade” algorithms.  Having used Ron’s VISIONS software for the past several years, and having met him personally, I trust that he knows what he is doing.

So, I’m ‘sticking my big toe in the water’ so to speak and seeing if I can replicate Ron’s results in my own trading.  Yesterday, was my first “Show the Trade” trade in Chevron (CVX).  Today, it was Silver Wheaton (SLW) that flashed a buy signal so since I’d successfully traded it before and was comfortable owning it at these prices I decided to give it a go.

Here are the trades I executed.

(1) Bought 200 shares SLW at $30.07

(2) STO 2 MAY $29 puts at $0.64

Here is the one year price chart for SLW.  As you can see it has strong support in the $28-$29 range.

Well, there you are, two trades in two days.  I must be losing my mind (ha ha).  Time will tell if I can replicate Ron’s success.  Have a great weekend.

Regards,

Troy

Posted in Troy's New Picks!, Uncategorized | Tagged: , | 1 Comment »

Weekly NP Strategy – NOV 25 Exp Results

Posted by mounddweller on November 25, 2011

Fellow Traders,

Last week I recommended three trades for our Weekly NP Strategy.  I recommended trades in AA, MRVL, and SLW.  For the first time since I started this strategy one of my recommendations finished ITM.  While MRVL and SLW finished well OTM, AA did not.  I had recommended AA at the $9 strike price.  In the holiday shortened trading session today, AA closed at $8.95.

Happy Holidays to one and all.  I’ll be back later this weekend with new possible trades from both the Weekly NP Strategy and the Deep OTM NP Strategy.

Regards,

Troy

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Weekly NP Strategy – NOV 25 Expiration

Posted by mounddweller on November 17, 2011

Fellow Traders,

Our selection criteria this week produced a list of 117 possible trades.  Of these I found three that I like.

AA has appeared on our weekly list previously.  I like it at $9.  AA has a 52-wk hi/low range of $18.47 to $8.45.  While it went substantially lower during the 2008/9 financial crisis I think we’re not going to get back to those levels in the next week.

Next up is MRVL.  Today it announced that flooding in Thailand had hurt demand for its hard-drive controllers.  Consequently the stock sold off even harder than the overall market.  MRVL was down over 6% today.  Like AA, MRVL it trading much closer to its 52-wk low ($11.23) than it is its 52-wk high ($22.01).  MRVL has a rock solid balance sheet.  It has $3.96/share in cash and ZERO debt.  The $12 strike looks like a good NP trade.

Last we have Silver Wheaton (SLW).  SLW has appeared on our list many times.  It is rather volatile.  However, the $28 strike seems like a good bet to me.  The $28 strike is about 10% above its 52-wk low of $25.84.

I have posted the spreadsheet containing the entire list of possible trades out on the Weekly Options group board.  You can find it here: http://finance.groups.yahoo.com/group/weeklyoptions/files/.

Regards,

Troy

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Weekly NP Strategy – OCT 28 Results

Posted by mounddweller on October 28, 2011

Fellow Traders,

Last week I chose 3 trades from our Weekly NP Strategy selections.  You’ll recall my 3 chosen trades involved AA, HPQ, and SLW.  Let’s take a look and see how the trades turned out.

First up is Alcoa (AA).  When I selected AA it was trading at $9.95 and the OCT28 $9 put was trading at $0.05 bid.  Today, AA closed well OTM at $11.57.  Before commissions the ROIC for the 8 day holding period was 0.56%.  Annualized that comes out to 25.35%.

Next up is Hewlett Packard (HPQ).  You’ll recall HPQ has had a difficult time of late.  Shoddy management with poor decision making and a volatile market had driven it down to levels not seen in quite some time.  Because of this I felt comfortable selecting it as a potential trade.  When I selected HPQ it was trading at $24.74 and the OCT28 $23 put was trading at $0.21 bid.  HPQ closed today at $27.95.  Our 8 day ROIC was 0.91%.  Annualized this return is an outstanding 41.66%.

Last, we have Silver Wheaton (SLW).  SLW has been on a roller coster ride as well as it closely tracks the price of silver.  When I selected this trade SLW had closed at $29.09 and the OCT28 $25 put was at $0.15 bid.  Today SLW closed at $35.97.  The 8 day ROIC was 0.6%.  Annualized this comes out to a very respectable 27.38%.

Clearly, if one can consistently find trades like these a Weekly NP Strategy can generate a significant return.

Well, that’s it for today.  I’ll be back later this weekend with the Deep OTM NP Strategy NOV Week 3 selections.

Regards,

Troy

Posted in Weekly NP Strategy | Tagged: , , , | 1 Comment »

Weekly NP Strategy – OCT 28 Exp

Posted by mounddweller on October 20, 2011

Fellow Traders,

I have three picks for you this week from our Weekly NP Strategy.  None have looming earning releases.  Here are my three choices this week:

First up is Alcoa (AA).  AA has already announced 3rd quarter earnings.  It has declined steadily since hitting a 52-wk high back in April.  It seems to have found a bottom, closing at $8.90 back on October 3rd.  Will it retest this low before expiration next week?  Who knows?  However, I think it is a fair bet.

Next up is Hewlett-Packard (HPQ).  It doesn’t announce earnings until November 21st.  HPQ as you’re probably aware has had a terrible year.  Since late February it has fallen from the high $40s to a low of $22.20 back on October 3rd.  HPQ closed today at $24.74.  We can sell the $23 strike for $0.21.  Almost 1% for one week of exposure on a stock that is already down 50% this year seems like a reasonable bet to me.

Last up is Silver Wheaton (SLW).  SLW doesn’t report earnings until early November.  It closed today at $29.73.  It has not closed below the selected $25 strike price since November 15th of last year.

Well, that’s it for this week.  I’ll be back this weekend to look at our monthly Deep OTM Strategy results and also look at our November selections.

Regards,

Troy

 

 

Posted in Weekly NP Strategy | Tagged: , , , | 1 Comment »

Weekly NP Strategy – OCT 22 Exp

Posted by mounddweller on October 13, 2011

Fellow Traders,

Below are my selections for the Weekly NP Strategy this week.  There were over 1300 selections that met our basic criteria.  Obviously I didn’t have time to dig deep into all of them to pick the ones I liked.  Thus, the ones below were selected with minimal due-diligence.  I primarily selected large caps, paying a dividend, where the strike price is less than the recent market lows.

Best of luck trading in the coming week.

Regards,

Troy

 

 

Posted in Weekly NP Strategy | Tagged: , , , , , , , | 2 Comments »

Weekly NP Strategy – OCT 7 Expiration Results

Posted by mounddweller on October 8, 2011

Fellow Traders,

Last week you’ll recall I suggested  5 NP trades that looked worthy of your further due diligence and possible selection.  I suggested trades in the following:

CSCO at the $15 strike,

HPQ at the $21 or $22 strikes,

MSFT at the $24 strike, and

SLW at the $25 strike.

I’m happy to report each of these trades finished OTM by a significant margin.  Thus far, knock on wood, since launching this strategy I haven’t suggested a single losing trade.  The markets are being kind to me.  Let’s hope it continues.

Regards,

Troy

Posted in Weekly NP Strategy | Tagged: , , , , | 3 Comments »

Weely NP Strategy – OCT 7 Exp – Updated

Posted by mounddweller on September 30, 2011

Fellow Traders,

I had a few minutes to look through the file.  Below are a few selections I think have merit and warrant further due diligence.

Regards,

Troy

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Weekly NP Strategy – First Results

Posted by mounddweller on September 3, 2011

Fellow Traders,

Well our first week of selecting weekly NP trades has concluded.  Let’s take a look at how my choices faired.   You’ll recall my choices were:

(1) The $36 strike of BP Exploration (BP) which had closed the previous day at $38.19 closed OTM yesterday at $36.53

(2) The $26 strike of Research in Motion (RIMM) which had closed at $28.19 the previous day closed OTM yesterday at $30.12

(3) The $35 strike of Silver Wheaton (SLW) which had closed at $39.41 the previous day closed OTM yesterday at $40.71

(4) The $28 strike of Suncor Energy (SU) which had closed at $30.31 the previous day closed OTM yesterday at $30.41.

Hey, how about that!  4 for 4.  We’re off to a great start testing the possibilities of this Weekly NP Strategy.  Given the market’s performance Friday I suspect this next week may be a little more challenging.

Hope everyone is enjoying their Labor Day weekend.

Regards,

Troy

 

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