The 40-period moving average is one that I often refer to for longer term guidance. Looking at how SLV has reacted to the 40-week moving average over time gives some additional input as to how I will position myself next week. Not sure if the strong buying momentum will continue into next week's opening or if option expiration activity was a key factor. If anyone out there watches the expiring option open interest levels to make price predictions, please chime in.
Seems like in most cases, price has shot through the 40-week average but has then served as a magnet to pull prices back down to either ride this average or break away. So using this, along with a previous shorter-term channel view in the last post, I'm thinking of selling some May 22 $16 puts, especially if we open a bit weaker. Seems that price can run perhaps up to 17 - 18 over the next few weeks and still be in a B move of a corrective phase with another move down later. I've seen some projections of prices breaking under $10. I'm targeting 12.5 or thereabouts but must say that my calls haven't been so spot on recently.
My Excel data on the daily basis shows strong upside momentum in all the cycle indicators so I want to sell puts to continue taking in premium on the weekly basis. First was thinking that the 15.5 level is where the 40-week average comes in and that would be a seemingly easy short put position. But seeing how price generally overshoots that line on it's first attempt through makes me think that the $16 put is worth the risk. If I'm dead wrong on this, I sold June 19 $12 calls yesterday so I would only be moderating any profits I would accrue on the downside.
For the bullish side, I have lots of Jan 21 LEAP spreads ranging from $16 to $20 offset by $25 calls, some outright Jan 22 calls and the physicals. Those positions don't get touched as I'm long term bullish. The long term goal is a Mike Maloney prediction, that 1,000 ounces will buy one a nice home when prices reset. I'm shooting for a beach front condo in Mexico! Que Bueno, no?
Seems like in most cases, price has shot through the 40-week average but has then served as a magnet to pull prices back down to either ride this average or break away. So using this, along with a previous shorter-term channel view in the last post, I'm thinking of selling some May 22 $16 puts, especially if we open a bit weaker. Seems that price can run perhaps up to 17 - 18 over the next few weeks and still be in a B move of a corrective phase with another move down later. I've seen some projections of prices breaking under $10. I'm targeting 12.5 or thereabouts but must say that my calls haven't been so spot on recently.
My Excel data on the daily basis shows strong upside momentum in all the cycle indicators so I want to sell puts to continue taking in premium on the weekly basis. First was thinking that the 15.5 level is where the 40-week average comes in and that would be a seemingly easy short put position. But seeing how price generally overshoots that line on it's first attempt through makes me think that the $16 put is worth the risk. If I'm dead wrong on this, I sold June 19 $12 calls yesterday so I would only be moderating any profits I would accrue on the downside.
For the bullish side, I have lots of Jan 21 LEAP spreads ranging from $16 to $20 offset by $25 calls, some outright Jan 22 calls and the physicals. Those positions don't get touched as I'm long term bullish. The long term goal is a Mike Maloney prediction, that 1,000 ounces will buy one a nice home when prices reset. I'm shooting for a beach front condo in Mexico! Que Bueno, no?
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.