We hold the September 42/46/50 call butterfly four times for $1.04, and it has gone from a longshot bet to a 5-to-2 horse in the last two weeks. Because the stock is coming up on two Hidden Pivots that have some potential stopping power, let’s trade against our position by buying some puts. The targets lie, respectively, at 41.55 and 42.77, so I’ll recommend buying four September 38 puts if the lower number is approached today within 4-6 cents. Stop yourself out if SLW trades 41.71 or higher, but re-short using the September 40 puts if 42.77 is closely approached.
