Silver has crossed the $80 key resistance threshold and may be setting its sights on triple digits, first quarter, this year. If so, we are already well positioned to profit with the current option portfolio: PRO Silver Trades All four positions made fresh, "Best Price, Best Returns," this morning. Silver (Spot) First foray into $80's has met with expected resistance. A clean breakout into the $80's is needed to sound the "all-clear," and set sights on $100 Silver. Note below that the Feb $100C is up 86% today on a 5% move in Spot Silver. A run to $100 would be a 20% move and by implication, the Feb $100C could be up over 300% the closer Spot gets to the century mark: SLV Feb $100C A more conservative option strike is the SLV $80C, which carries a tad less leverage but a whole lot less risk: SLV Feb $80C Recommendations 1. If already fully invested, sit back and enjoy, keeping an eye on the trailing stops in the table; 2. If looking for new exposure to Silver, both the $80 and $100 strikes are at an attractive entry points, as the further into the $80's Silver gets, the more fevered the rush to get on board. Once past $90, well, $100 is a done deal; 3. Rolling Into New Strikes: The Jan SLV calls go off the board on Jan 16th. Between now and then (10 days), sell the entire position and place up to half the proceeds into the more leveraged Feb 20th $80C and/or $100C. I already own both. As always, maintain a -50% hard stop that becomes a 50% trailing stop once the option exceeds +100%. Bottom Line: Once cashed out of the Jan $50C, we will be playing Silver with the house's money for the foreseeable future.
