SLW: Summary for SILVER WHEATON CORP

SLW: Summary for SILVER WHEATON CORP – Yahoo! Finance

SLW is one of my covered call holdings. I wanted to post a few thoughts on this company stock.

The company buys silver from mines that produce silver as a by product at a preset price of about $4 per oz. and sell on the open market. The company appears to be growing, highly profitable with low overhead (I think there are 6 employees).

The stock has run up nicely the last 4 days to about $11.75. My sold option is the June $12.50. There should be a quarterly earning release the end of June, so a pre-release price runup would not surprise me. If the stock gets called away I will wait until after the earnings number before considering another buy-write.

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3 Responses to “SLW: Summary for SILVER WHEATON CORP”

  1. Jeff Says:

    From a January post:
    “Item of interest: It appears a implied volatility of 50 equals about a 5% per month option premium for at the money calls. I will be looking at different volatility levels to see if there is a correlation.”

    If you ever completed this analysis, I’d be interested in the results.
    Thanks

  2. Tim Says:

    I haven’t taken the time to do an analysis. A couple of things come to mind:

    I think the idea applies only to at the money options. I have started trading more out of the money, so look at other criteria.

    Also, the premium return falls off with time to expirations.

    So, I would say that is a very loose observation.

  3. Maximus Says:

    I would like to see a continuation of the topic


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