The weekly chart shows Silver Wheaton to have done little more than screw the pooch during the past twelve months. Despite this, there were undoubtedly times when you and I got all het up over the stock’s retrospectively gratuitous ups and downs, which mostly stayed within the range $20-$30. SLW is working on a bullish impulse leg at the moment, but it must be said that if the buyers had any guts, they’d have taken out the 27.25 peak recorded back in September. The fact that they did not suggests the stock is in no great hurry to blast off; and neither should we be in a hurry to acquire shares or options pronto.  Since the very big picture suggests the bullish consolidation of a stock capable of very powerful rallies, it is not inconceivable that we should try to lay in an inventory of way-out-of-the-money call options at some point. Just not now. We’ll want to do so when the stock looks strong enough to allow us to spread those calls off so that we hold essentially riskless vertical or calendar spreads, as we have done so often in the past.

Since we should always keep an open mind, we must acknowledge the possibility that SLW is imminently about to trash my outlook with a blast into outer space. You can prepare for this by monitoring the 15-minute chart, since a ‘b c’-type pullback from above the 22.81 ‘external’ peak made yesterday at 1:45 p.m. EDT would offer the sort of camouflage entry opportunity that we thrive on.  Please report any fills in the chat room so that I can establish a tracking position for your further guidance. _____ UPDATE (April 1, 10:22 p.m. ET):  The stock triggered a false entry signal 30 minutes into the session then flopped around for the rest of the day. Subtler opportunities may await, and I’ll therefore suggest doing your hunting on the 5-minute chart or less.