Buy Alert: June 6, 2013

| June 6, 2013

Buy Alert:  June 6, 2013


Option Strategy:

Buy iShares Silver Trust (SLV) August 2013 $22.00 calls for $1.25 or better.


Commodity Outlook:

The US Dollar is tanking today.  There’s no news to speak of to cause such an abrupt downdraft.  But one thing is for certain…

…precious metals are rallying hard.

In fact, silver just broke through important short-term technical resistance at $22.70.  This could be the start of a big bounce silver bulls have been waiting on for the past few weeks.

Let’s capitalize on the potential for higher silver prices by buying iShares Silver Trust (SLV) calls.  As you may know, SLV is an ETF tracking daily price movements in silver futures.  If silver rallies, so will SLV.

Here are the important details you’ll need to make this trade…


Trade Metrics

Underlying ETF Symbol: SLV
Call or Put: Call
Expiration Month, Day, Year: August 16th, 2013
Strike Price: $22.00
Current Bid/Ask Price: $1.16/$1.18
Maximum Buy Up To Price: $1.25
Maximum Risk Per Contract: $125

 Here’s a breakdown of the important technical support and resistance zones in silver…



Exit Strategy:

Remember, we want the price of silver to move higher.  Our first profit target is $24.00.  If upward momentum in silver builds in coming weeks, we may see it retest the low set in June 2012 at $26.00.

Technical support is at $21.50.  If silver trades below this level, conservative investors should consider closing this trade to keep risk in check.


Category: Commodity Trading