|Click to Enlarge|
- Purchase shares of SLV at the current market price
- Sell the call option for those shares with one week expiration @ $34
- Place a buy stop order slightly above the call option execution price at $34.01 to $34.03
We believe silver and gold are going to "break out" into a new higher trading range. The current buy order is $34.01 with limit of $34.03. This represents our buy stop recommendation which keeps us holding SLV after it "breaks out." After SLV enters the new trading range, we continue this strategy with higher call option and buy stop prices.