Having established a long position in Silver Wheaton two days earlier just 13 cents from a potentially important corrective low, we took a close look at the stock’s vital signs to determine what to do next. SLW had in fact rallied $1.80 from the bottom, or a little more than five percent, turning June 40 calls that we’d acquired into solid winners. With the goal of shorting June 42 calls against them, how far should we try to stretch this one? As you will see, there were good technical reasons to let our profits run.
