Let’s try to leg into some calendar spreads, first by bidding the December 40 calls conservatively: 0.86 for eight of them, day order. This strategy is cheaper and less risky way to leverage options directionally than simply buying call options outright (an all-but-guranteed loser). Obviously, SLW shares will have to soften today to get us filled, but if it doesn’t work we can try getting long by buying the calls on pullbacks intraday. Succeeding at this would require a great deal of attention, but we’ll try it the easy way first. _______ UPDATE (August 28, 12:45 a.m. EDT): Since the calls traded down to a low yesterday of 0.86, I’ll track eight of them for that price. For now, use a stop-loss at 0.66. _______ UPDATE (August 28): Chat-roomers have told me their 0.86 bids went unfilled, so I am canceling the tracking position. The calls have rallied to 1.00 since, but it is my firm policy never to chase options, even if it means we might miss an opportunity. For now, bid 0.78 for the eight December 40 calls, good-till-canceled. _______ UPDATE (August 31, 12:47 a.m. EDT): Some chat-roomers have reported fills, so I will begin tracking eight December 40 calls with a 0.78 basis. Do nothing further for now as we await a bounce from the 32.48 pivot shown (in a chart that has been refreshed). A weak bounce, or perhaps no bounce at all, would presage further weakness next week. _______ UPDATE (September 5, 6:46 a.m.) SLW has continued to move higher. Let me recommend offering eight December 45 calls short for 0.78 against the December 40s that we are long, good-till-canceled. If successful, we’ll have legged on a vertical bull spread that could produce a gain of as much as $4000 with no loss possible.
