| Trade sees floor in Silver Wheaton | |
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Silver Wheaton is down today, but traders are betting on a floor in the stock for the rest of the year.
optionMONSTER's tracking systems detected the sale of 3,400 January 12 puts for the bid price of $0.13 this morning. This is clearly a new position, as open interest in the strike was 1,000 contracts before the trade occurred.
The put seller collects the $0.13 premium and is looking for SLW to stay above $12 through expiration in mid-January. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)
This type of strategy has a high probability of success but also carries significant risks in a sharp selloff, especially because such trades are often done with large leverage. That is why they have been likened to " picking up nickels in front of a steamroller ."
SLW is down 3.91 percent to $19.80 in early trade. The silver broker broke out of a tight range this week, shooting above its 50-day moving average, but is pulling back today with price of precious metals.
The company will release its next quarterly results after the market closes next Thursday, May 7.
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Silver Wheaton
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 12.6 billions as of today (US$ 9.2 billions, € 8.4 billions). Its stock quote reached its lowest recent point on March 09, 2007 at CA$ 10.01, and its highest recent level on May 15, 2017 at CA$ 28.53. Silver Wheaton has 441 520 000 shares outstanding. |