SLW – Silver Wheaton (Last:24.13)

Silver Wheaton showed encouraging strength compared to Comex futures, but the strain of maintaining altitude as physical declined has finally taken its toll. Now the stock looks primed to fall to the 23.71 Hidden Pivot support shown. I’ll suggest preparing for this: 1) first, by getting short on the next break below p=24.78; and then, 2) bottom-fishing at D by buying four November 22 calls at the 24 strike for perhaps 1.10. (You’ll need to monitor the bid/asked in real time to get a better feel for the right price.)  You should stop yourself out of the puts if they trade for 0.15 less than you paid for them. ______ UPDATE (Sep 4, 11:07 p.m.): Thursday’s low fell just 12 cents from the 23.71 target first broached a while back, so you should be preparing to act as suggested above. _______ UPDATE (Sep 7, 10:37 p.m.): The stock bounced 40 cents off a 23.76 low, but I’ll wait till I hear from subscribers who got long before I establish a tracking position.