Tim Reazor
Chief Investment Strategist
NorAm Asset Management
I’m bullish on silver because of the chart pattern that is taking shape. After a recent spike higher silver is consolidating and digesting the recent gains. The numbers 1, 2 and 3 represent potential price targets.
I love this chart pattern. Whether it is a stock, metal or commodity that sports a consolidation at recent highs there are several ways to potentially make money from this set up.
The easiest thing to do is just to buy shares of SLV. You could also design a put credit spread around SLV at 1 standard deviation. What I prefer in this situation, because the options are not that expensive, is buying Delta 70 calls for August, September or October.
Let’s examine a chart of SLV the silver ETF. It closed Monday at $20.17. If you’re going to buy calls you know that you’re buying a depreciating asset. You can offset the decay by selling put credit spreads every week to offset the decay or go theta positive.
I’m going to cover this set up in great detail during a webinar today July 8th at 7 PM central. I’ll show you how to harvest potential gains along the way, set price targets, sell credit spreads for income and how to overall manage this trade.
I made a short video this past weekend that explains other concepts I’ll be teaching you today. Click this link to watch the video – http://noramassetmanagement.com/whats-trending/weekend-video-update-12/
If you want to learn more about my rules based approach to investing the webinar is complimentary. During the webinar you’ll receive a current watch-list of leading stocks and fresh credit spread ideas that may be suitable for your account.
To register for the webinar please click this link http://noramassetmanagement.com/
We were just about at capacity for the June 26th webinar, so we’ve expanded the room for the class this evening. Feel free to invite any groups or individuals that you feel would benefit from the information, and be sure to bring your questions! I won’t end the webinar until all of your questions are answered.
I hope this helps you find success.
Best Regards,
Tim
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Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
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