The stock has held up better than the metal recently, but something’s got to give. Since SLW looks more bullish than Comex Silver does bearish, my bias is positive for the time being, with a focus on the 42.77 rally target of the pattern shown. It’s sibling ‘p’ midpoint at 40.48 has yet to be achieved, but I’d want to see two consecutive daily closes above it before I infer that 42.77 is a done deal. Meanwhile, we hold eight December 40-45 call spreads without risk, having legged into them at zero cost. If SLW is trading above $40 come December 21, the position can produce a gain of as much as $4000.
