SLW

We hold 300 shares against three June 40-May 38 puts spreads legged on for a 0.50 credit.  The stock has fallen to within inches of the 34.17 target.  I still expect a bounce from these levels -- perhaps this is it, and the target will not be reached -- but the magnitude of the rally is beyond speculation at the moment.

Ya gotta love this stock for hanging tough yesterday when Silver futures were getting savaged. Our 300-share position from 42.01, now hedged with three June 40-May 38 puts spreads legged on for a 0.50 credit, has barely been stressed by the action thus far. That said, we don't want to get sandbagged if the stock falls a further $3 -- which it could! -- while we're busy patting ourselves on the back. I've reproduced a chart alongside that shows the corrective pattern and its 34.17 target. I'll mention as well that a rally would need to clear 38.66 today to somewhat mitigate the threat.

We hold 300 shares with a 42.01 basis against three June 40 puts @ 2.35.  A 36.35 target that at times seemed so improbable has served us well. Now, let it provide a benchmark for shorting May 38 puts.  If the stock gets within 15 cents of the target, sell three of them against the puts we are long, day order. _______ UPDATE (11:53 a.m. EDT):  The longstanding target at 36.35 caught this morning's low within a penny, allowing us to short May 38 puts puts for as much as 2.85.  That means we have effectively legged into a $2 vertical put calendar spread for a net CREDIT of 0.50 (!).  Do nothing further for now, but if you bought stock near the intraday low, I'd suggest taking profits on half of it, since SLW has rallied $1.36 off the low.  That way, even if the stock relapses in a nasty way, as will always be possible, you can still come away with a profit.

We hold 300 shares with a 42.01 basis against three June 40 puts @ 2.35.  Yes, Wednesday's rally looked pretty good on paper, and we especially enjoyed it because we are net long the stock. But we should restrain our enthusiasm until such time as SLW exceeds a look-to-the-left peak at 44.23 that can be found on the five-minute chart (4/11).  The 36.35 downside target is still valid in theory although hardly a threat at the moment.

We hold 300 shares with a 42.01 basis against three June 40 puts acquired for 2.35.  SLW has retreated in the face of implacable supply near 44, but bulls will have a chance to turn things around today from 40.17 or higher. That's the midpoint support of the corrective pattern shown, but if it were to fail on a closing basis for two consecutive days, I'd infer more downside is possible over the near term to as low as 36.35.  That would represent a correction of nearly 24 percent. Alternatively, bulls would have to hit 44.52 by tomorrow to regain the offensive. _______ UPDATE (April 26, 6:52 p.m.):  The 40.17 midpoint has now become resistance, and if it should go unchallenged today, expect the stock to continue lower to the 36.35 target. Accordingly, I'll recommend offering four (one would be naked, assuming your account allows it) May 37 puts short if and when the target is closely approached (i.e., within 10-15 cents), good-till-canceled.

We continue to hold 300 shares @ 42.01 against three June 40 puts acquired for 2.35.  In my eagerness to get newbies aboard yesterday, I advised no stop-loss on a 41.40 bid for 200 shares. Some of you who were in the chat room evidently bailed out when SLW plunged well below that number, but if any subscribers held on, even after I posted a recommendation in the chat room to exit as the stock was rebounding above 41.10, please let me know and I'll establish a tracking position if there are at least three affirmative responses. Since there is still vulnerability down to as low as 37.97, those who bought yesterday should use a 41.10 stop-loss.

We bought three June 40 puts @ 2.35 to hedge 300 shares of stock whose cost basis is 42.01.  This is a gentle backspread, and because the puts have a delta value of about 35, our position nets out to the equivalent of being long 200 shares. If SLW continues higher the puts will shed deltas, making us "less short."  We'll look to reduce our premium exposure on any weakness by shorting puts of another strike, but for now do nothing further. The stock is still not out of the woods, by the way, and we might still see a foot-fake down to 41.40 before SLW turns sharply higher.  To make this possibility more interesting for newbies, I'll suggest bidding 41.45 for 200 shares, no stop.

We hold 300 shares with a cost basis of 42.01. After creating a nasty bearish impulse leg on the hourly chart on Monday, SLW has been playing toe-sies with a support line near 42.00 that goes back to late March. Since I don't fancy doing nothing while the stock glowers menacingly at us, I'm going to suggest taking the offensive with a 2.35 bid for three June 40 puts, day order. My goal is to leg into a bearish "free" butterfly keyed to the 36 strike. This strategy is suitable only for those who are long stock, but I will continue to look for a great entry spot for newbies. It is not here, though, at these levels, since the question of up or down looks to me like a coin toss.

We hold 300 shares with an effective cost basis of 42.01 that was reduced by earlier profit-taking. My current target is 50.22, and because the stock  gapped through the 46.15 midpoint resistance associated with that target, we'll let our paper profits run for now with no stop-loss.  On the off-chance that SLW swoons, and for the benefit of those who have not yet established a position, bid 44.58 for 400 shares.  _______ UPDATE: Cancel the order.  It was a non-starter because SLW has lurched higher. _______ FURTHER UPDATE (10:11 a.m. EDT): The stock has been socked for a 10 percent loss and moments ago created a bearish impulse leg of daily-chart degree by falling below 422.07.  Hang on, since we weren't aboard just for a trade and knew corrections were bound to be vicious and violent. If the perfect buying opportunity should develop, I will signal it for newbies.