Wednesday, June 3, 2009

Sliver Play

Silver is down today, and I decided to make my play by selling 10 put contracts at eht $14 strike with Jul 09 expiry for $0.30 a contract. I do not plan to be exercised but if I do that would give me a purchase price of $13.70 per share and from there I would revert to a covered call strategy. As I discussed in the ealier post about silver, I do not see a lot of downside on this play and feel really confident that Silver will not go to zero.

I also sold another 10 short contracts at the same strike price but with Jan 10 expiration for $1.30. My plan is to buy this back at about a $1.

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