SLW (Silver Wheaton) - We are taking some profits today in
Silver Wheaton we added to our position on 06/22/11, and after
a +12% gain in the stock,since then SLW has reached overbought
territory on an intermediate-term basis (intermediate-term for
us is several hours to several days).
SLW is overbought as per a
9 Day RSI reading above 70 now - if you recall from our last
post we highlighted the overSOLD conditions as per a 9 day RSI
reading near 30. (See Attached Chart Below)
The upper bollinger band is also up here
toward daily prior resistance at $37.20 (See Attached Chart Below)
How We Are Playing It: We are selling 1/3 of our position here @ $36.80 (that we plan on trading around our core long). We are selling July 37 Calls against the another 1/3 of our position for $.80. And the last 1/3 of our position is our core long that we do not intend on selling unless the mid $40s is reached in short order.
Disclosure: I am long SLW.