SLV Trade Update

by Dan April 26, 2011 9:51 am • Commentary

UPDATE 3:53pm Apr 26th. I’m taking the whole thing off at or around .75. Not worth the risk for the other .25, Rationale is simple, the stock has been amazingly volatile over the last couple days and at this point the risk reward over the next 3 days seems out of balance to risk the profit that I made, plus my initial outlay to make another .25 or .30…

– As I said yesterday in my initial post I think that was a blow off top, check back over the next couple days as I will look to roll this gains into another bearish structure in the name.

Original Post:

SLV is down about 4.5% since yesterday morning when I suggested weekly put spreads…..I paid .35 for the SLV Apr29 wkly 46/45 Put Spread…..with the stock at 44.15 that spread can be sold at .70, doubling your money.  I am taking half of my position off here as that rally back yesterday demonstrated just how volatile the stock is.  Want to let the rest ride for now, but if it rallies back I will use a mental stop of .35 for the balance of the spread thus locking in gains for the trade.