By popular request, I’m going to start offering trades in this vehicle to accommodate subscribers who prefer equity vehicles over futures. A cautionary note, however: The options are thinly traded, with open interest that extends no further than two strikes from the current price. My current recommendation is to bottom-fish at the 28.60 targets shown. This can be done with a 28.62 bid, stop 28.54. The target pattern is small and precise, with a very well-formed A-B impulse leg that promises to deliver a reliable bounce from D. If you use call options, the June 16th 36s should do. They closed on a 1.10-1.55 bid/asked, but if the market doesn’t tighten during trading hours, you’ll need to put your bid midway between to come up with a fair price. Buy them by paying up on the offer and you are all but guaranteed to lose money on the trade, especially since you could wind up selling on the bid to exit. If the order fills and the trade goes your way, you’ll be on your own managing risk and profit-taking. _______ UPDATE (May 21, 6:30 p.m. ET): Don’t be too concerned about the 28.60 correction target given above, since it’s a worst-case projection that comes from the weekly chart. Near-term, if SIL were to pop above the minor midpoint pivot at 36.73 shown in this chart, that would open a path to 37.81 over the near term. We’ll wait for it to happen before we take action, possibly with a ‘camouflage’ entry trigger or a ‘mechanical’ bid at the red line. _______ UPDATE (May 23, 6:39 p.m.): SIL ended the day sitting on a midpoint Hidden Pivot support associated with a ‘d’ target at 34.11. Use a 34.13 bid, stop 34.04, to bottom-fish today. You can substitute options, but you’ll be on your own on this one, since they are extremely illiquid, with bid/asked spreads as wide as Grand Canyon. Please report any fills in the chat room if the trade goes in-the-black so that I can establish tracking guidance if warranted. _______ UPDATE (May 24, 10:23 p.m.): SIL bounced after going no lower than 35.05. We’ll let the bid ride, good through Friday. [Update: No fill was possible on our terms.]
