Sell Alert: August 19, 2013

| August 19, 2013

Sell Alert:  August 19, 2013

 

Option Strategy:

Sell to close the iShares Silver Trust (SLV) October 2013 $19.50 calls.

 

Commodity Outlook:

The price of silver is skyrocketing…

In fact, the lustrous metal jumped from $19.50 an ounce on August 7th all the way up to $23.25 in this morning’s trading.  That’s a remarkable 19% gain for silver in the just the past seven trading days.

But what’s even more amazing is the fact that the SLV call options we bought on August 8th are up a whopping 220% this morning! 

As silver surged, our options exploded from $0.96 a contract, up to the current price of $3.10.

But here’s the deal…

Even though silver hasn’t hit our second target of $24, it’s best to lock in our profits now.  There are numerous economic data points coming out this week that could hinder a further rise in silver. 

So let’s not get greedy and expect more out of this trade than it’s willing to give.

Go ahead and sell to close the SLV October 2013 $19.50 calls for a gain of 220%.

Congratulations on a great trade!

 

Category: Commodity Trading

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