SLV – Short Naked Put


Precious metals have been hammered pretty bad over the past 9 months or so as evidenced by the chart below.

SLV-6_26_2013

There is certainly an argument to be made about not catching a falling knife.  However, I see some support coming around the 16.80 – 18 level, which also confluences with the 78.6% Fib Retracement of the last significant move up.
Looking to sell some naked puts.  If price rallies or stays at current levels you can pocket the premium.  With a premium of 32c, the BE point is 16.68 (if prices decline, you can own SLV at that price).  The other option is to close out the position.

SLV-PL-6_26_2013

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This entry was posted in Commodities, ETF, Options, Short Put, Silver. Bookmark the permalink.

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