SLW

We shorted four June 10 calls on Friday for 0.70, effectively legging into the September 10-June 10 calendar spread for "even" (i.e., our cost basis is zero).  Although we cannot lose money on this position, it has the potential to produce a gain of as much as $500 or so if SLW is trading close to the $10 strike when the June calls expire on the 19th.  Now let's see if we can build in a little more profit at the 12.5 strike, bidding 0.25 for four July 12.5 calls (SLWGV), day order. 

This is a heads-up, since we are close to getting filled on our order to short four June 10 calls for 0.70 against four September 10 calls we already hold for an average 0.69. Offer the calls on the opening for 0.65 -- a nickel less than I suggested here earlier -- but if the order goes unfilled, raise the offer to 0.70 and leave it in for the rest of the session. I would also suggest checking this tout after the first hour or so, since it may be advantageous to change our game plan on-the-fly.

We hold four September 10 calls with a cost basis of 0.69. Wheaton is in a minor downtrend that could hit 8.96, but the larger trends all point higher. Continue to offer four June 10 calls short against our position for 0.70. _______ UPDATE (3:44 p.m.):  This one's getting very close to a fill, so be sure to have your offer in when stocks open Friday (May 29) morning. If the order doesn't fill in the first three minutes, lower the offer to 0.60.

We're trying to spread off four September 10 calls we hold with a cost basis of 0.69, but so far no buyers have taken the bait. Perhaps if we raise the price it will change our luck: Offer four June 10 calls short for 0.70, good till canceled. We are not simply getting greedier

We are attempting to short four ____ calls for 0.60 against four ____ calls we already hold with a cost basis of 0.69. Leave the order in for today, but check back during the day, since we may need to adjust on-the-fly. DaBoyz got a little piggish yesterday with the brutal head-fake opening, but

We are trying to short four ____ calls against the September 10 calls we already hold for an average 0.69. Since we were unable to short the calls yesterday for 0.50, let's

We bought four ____ calls yesterday for 0.65 apiece. Sit with them for now, since we'll need a strong rally to allow us to short something against them for a sum that would

The two-peaks rule applies to Silver Wheaton just as it would any other trading vehicle. In this regard, notice how yesterday's promising rally stopped just a hair short of the external peak whose breach would have turned the 15-minute chart bullish. We needn't infer weakness in this instance; rather, buyers evidently were reluctant to move decisively because bullion prices were retreating. The chart yields a potentially excellent opportunity for buyers Thursday morning, since a mere 21-cent thrust would surpass three prior peaks -- one of them external. However, if the stock continues to misbehave, it will open on a gap above the three peaks, turning "everyone" too bullish for camouflage. In any event, and just to be in the game, let's bid 0.65 today for four ____ calls.

We've been playing cat-and-mouse with Silver Wheaton, trying to get long on weakness rather than on strength. Let's bid 0.60 today for four _____ calls, contingent on the stock trading ____ or higher. If SLW slips below that price lower the bid for the calls to 0.55 and leave it there for the rest of the day. Judging from the way the bids and offers have been mutating intraday, the calls seem to have a following. Seasoned traders undoubtedly covet the series because once ____ calls are acquired, it's possible to sell other call options short against them without taking much risk. The accompanying graph shows a potential bottoming formation for the ____ near 0.60. It's possible to buy and sell options using ABC target calculations just as we do with the underlying stock. FYI, the stock could fall to as low as _____ if it breaches a midpoint support at 7.66 that has held so far.