On January 9, 2015, I recommended a buy on the SLV January 2016 15 call as it traded at $2.25. Today, it’s up to $3.40. Consider selling to close this call to secure gains.
Now I want you to consider opening a hedge on silver.
The gold-silver ratio tells me silver is gearing up for a major move. However, recent technical analysis tells me there’s a temporary top that could give way to near-term selling pressure.
Instead of risking the January 2016 gains to any selling pressure, I’d prefer to secure the gain… and hedge with new trades that should pay off on both sides.
Buy to open the SLV January 2016 18 call up to $2.30…
Buy to open SLV April 2015 18 put up to $1.90.
And please, if you’d like to, join us this Friday for the webinar.
Best wishes,
Ian L. Cooper
Inside Value Trader