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Silver Wheaton
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We hold 800 shares with an adjusted cost basis of 12.95. Our most recent covered write expired in May, but we’ll look to sell some more call premium against our stock if and when it pokes above $20. ____ UPDATE: The stock is trading above $20, but this seems like a good time to be a little greedy, so we’ll hold off on the covered write. My next rally target is 23.72, and that is where we’ll plan to lay out some call options.
We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls shorted for 0.64. Continue to bid 1.84 to try to get the calls back. This corresponds to a minor downside target for today of 19.83. ______ UPDATE (12:57 p.m. EDT): Our patient, two-week vigil was rewarded with the worst timing of any option trade we’ve attempted in recent memory, since we wound up covering the calls just as this morning’s avalanche was starting. Live and learn, as they say. We still have a $4200 paper profit on our position and a new cost basis of 12.95.
We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls shorted for 0.64. Let’s bid 1.84 today to try to get the calls back. Pivoteers please note that I am using an abc-pattern “inverse” variation to project a low on the calls.
We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls shorted for 0.64. Yeah, you’re right, I should have had a stink bid in to cover the calls when they dipped as low as 60 cents. We’ll retire them at some point in the next week and retain the stock as a long-term hold. And someday we’ll feel only mildly chastened for having missed $2 or $3 of the move when the stock eventually trades for $50. For now, though, I will indulge myself one more day of being frozen at the wheel, since yesterday high at 20.96 was an exact Hidden Pivot target on the hourly chart (A=16.71).
We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls shorted for 0.64. We”ll let the options ride for now, since their volatility has exploded with the wild moves lately in the underlying stock. The May 18 calls are currently trading for around 1.06, but if their implied volatility were lowered to what it was just two weeks ago, the calls would be hovering around 0.77.
We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls that we shorted for 0.64. The covered write limits our upside participation above 18.64, so we may try to buy May 19 calls to get back in the game: not immediately, however, because Friday’s high came within pennies of a Hidden Pivot target that should give way to a correction of this by-now parabolic rally. _______ UPDATE: Do nothing further right now, since I don’t fancy covering a covered write when the underlying stock is in a parabolic move. I might have advised doing so earlier if I’d noticed that the April 15 high had impulsed above the 17.80 peak notched on January 11 (see chart). Instead, I was asleep at the wheel, missing archival-quality camouflage that became manifest on the $1.03 pullback that followed this very subtle breakout.
We hold 800 shares with an adjusted cost basis of 11.75 against eight May 18 calls that we shorted for 0.64. Let’s take advantage of the market-makers’ propensity to rip off the public on the opening by putting in a lowball bid ourselves to cover the calls: 0.32, and you can make it a day order. _______ UPDATE: We’ll put this one on the back burner for now, since time is surely no enemy of the covered writer.
