SLW

I'm going to consider the calendar spread as having been closed out for 0.40, which, when added to the 0.90 credit that was our cost basis, yielded a theoretical profit of $520 minus commissions. We'll try to re-establish a long position, but let's do it when SLW is weak rather than rallying toward the daunting resistance peak at 10.97 recorded in early June. 

With Silver Wheaton stealing up on $10 and expiration a little more than a week away, our calendar spread will be an increasingly easy sale for 0.50.  Yesterday the August 10 calls that we need to cover traded as low as 0.11, so I'd suggest paying no more than 0.05 to close them out as long as the stock is 9.75 or lower. we hold four Sep 10 - Aug 10 call spreads for a 0.90 CREDIT, implying a paper gain of $360.  That would be augmented by the amount for which we close out the calendar spreads.

We're still trying to exit four September 10-August 10 calendar spreads for 0.50, a gain that would come on top of a 0.90 credit that is our effective cost basis. Today, bid 0.15 to cover the short August calls, but lower it to 0.10 if SLW touches 9.40 intraday.   

We hold the September 10-August 10 calendar spread four times for an effective CREDIT of 0.90. Let's try to leg out of it for at least 0.50, first by bidding 0.15, day order, to cover the short August calls. If the order fills, offer the September calls to close for 0.65, good-till-canceled. If we are able to exit the spread for our price, our paper gain on the position would be $560.

We were unable to roll our calendar spread because the August 10 calls we'd needed to short for 0.35 traded no higher than 0.22. Since we covered the short July 10 calls for 0.05, we now hold four September 10 calls effectively for a CREDIT of 0.55 apiece. That means the worst we can do, no matter where the stock is trading at expiration in September, is make $220 on our position.  Let's continue trying to build more edge into it by offering four August 10 calls short for 0.35, good-till-canceled.  _______ UPDATE (July 23):  With SLW trading as high today as 9.47, our order to short four August 10 calls for 0.35 filled easily.  That means we now hold the September 10-August 10 calendar spead effectively for a 0.90 CREDIT, plus its current value (around 0.25 at the moment).  Do nothing further for now. 

We legged into the September 10-July 10 calendar spread a while back at such a great price (a 0.60 CREDIT per spread!)  that even when the stock fell 35% from recent highs near $11, we still had a lock on a minimum $240 paper profit. Since the four July calls we are short are expiring on Friday, let's roll the spread once again, buying (i.e., covering) the Julys while shorting four August 10 calls (SLWHB) for a net credit of 0.30.  On this one you can take a leg if you want, first buying back the Julys for 0.05 -- the lowest price possible for a retail customer (professionals can buy them for $1 "in the cabinet").

We could easily book a profit of about $450 on our September 10-June 10 calendar spread, which we hold with an adjusted CREDIT cost basis of 0.10.  However, since we're positioned in the July 12.50 calls already, let's simply roll the spread into July and try to build yet more edge into the position. To do this, we'll need to sell the June 10-July 10 calendar spread four times (i.e., covering the four Junes and shorting four Julys). Do this for 0.50, then please let me know in the chat room when the order is filled. _______ UPDATE (10:50 a.m.):  Rolling the spread for 0.50 has been fairly easy this morning, since that price is midway between the quoted market of 0.40-0.60 (i.e., the most you would pay for the spread is 0.60, buying (i.e., covering) the June 10 calls on the offer while shorting the July 10 calls on the bid; and the least you would sell the spread for is 0.40, shorting the July 10 calls for 0.90 on the bid and buying the June 10 calls for 0.50 on the offer ).   Imputing the gain from our Sep 10-June 10 call spread to the Sep 10-July 10 we now hold will allow us to carry the spread for a credit of 0.60.  That means that no matter what SLW does between now and July expiration, we will make at least $240; and if, ideally, SLW is trading around $10 at that time, we could make as much as $640 (with the spread going out for 1.00). Keep in mind that we also own four July 12.50 calls @ 0.30 that will give us a bullish "kicker" for the next month.  

We're long the September 10-June 10 calendar spread four times for a 0.10 CREDIT,  and we also hold four July 12.50 calls bought more recently for 0.30. Our intention was to spread off the latter, so let's try it today by offering four June 12.50 calls for 0.20, day order.  The spread could widen to as much as 1.00 at expiration, implying that our risk:reward would approach 1:10.  Would you lay 10:1 that Silver Wheaton won't rally another 1.60 over the next two weeks?  We'll have the other side of that bet if we get the short sale off. (Note: As of yesterday's close, the stock looked like it could conceivably pop to 11.56 before the week ends.)

We don't have to chase the July 12.50 calls, since the position we have on already -- long four September 10-June 10 calendar spreads for a 0.10 CREDIT -- is all but certain to produce a profit no matter what.  However, just to fatten our odds, I'll recommend bidding 0.30 for four July 12.50 calls today and leaving the bid in for the entire session. Concerning the stock, yesterday's tedious dither looked like consolidation for a push to 11.08, the nearest Hidden Pivot above -- a minor one to be sure.