Silver Wheaton is closing on a Hidden Pivot at 26.43 that seems likely to stop the rally, if only for a short while. Let’s try to scalp against our position (800 shares from 12.95), shorting four October 27 calls for 0.75. That’s about how much they should be selling for with the stock at or near the target, but you may be able to improve on that price by monitoring the bid/offer as SLW approaches it.  Stop yourself out of the calls (i.e., cover them by buying them back)  if the stock trades 26.52 or higher. _______ UPDATE (11:55 a.m. EDT): We shorted the calls, which traded as high as 0.85, and we still hold the position, since the stock went no higher than 26.51.  We’ll use an 0.80 basis — midway between the low and high of the range as SLW approached the target. As before, you should stop yourself out if the stock touches 26.52. FURTHER UPDATE:  We scratched the trade — give or take 0.10 — when SLW head-faked to 26.57 later in the day. The stock subsequently pulled back to 26.01, ending the day on a weak rally.  On balance, the 14-cent overshoot of the target was mildly bullish.