For a speculative silver bull option play, I am buying: ZSL Put, Strike 10, Expiry May 2012, Currently 1.10…may even go lower.
Enjoy It While It Lasts, Because It Never Does!
In the movie Wall Street, an older street veteran told Charlie Sheen: Enjoy it while it lasts kid, because it never does”. We at thesilvershortage.com kind of feel that way right now. Silver new highs, silver mining stocks making new highs, been an average of 90% invested for over three months riding the momentum and the price gains. We said Sunday night that we would be more comfortable at about 60/40 invested because we’re more in a capital preservation mode. That is because the first quarter was one of our best lifetime quarters performance. We still want to build on that and make you more money. However at the same time we are going to take some profits tomorrow and go to cash some. The mining stocks valuations are getting really stretched now and they seem to go up every day. That can last for a while but for some insurance we’re booking more profits.
After a great first quarter the second stared off even hotter. In last two trading days the model portfolio soared 6% and that is why we are booking some profits from the newer investors coming into the sector. We’re on the open tomorrow are going to be selling 11% of 26% position in First Majestic Silver for a gain of approximately 18.01%. Glad we suggested that one again as our largest holding with a staggering 18% gain in less than a week. We’re selling are entire 10% position in Endeavor Silver (EXK) for a very nice approximate gain of 9.35%. We’re selling a 5% position in Pan American Silver (PAAS) for an approximate 3.22% gain.
These moves on the open will take us from 100% invested to only 73% invested then being 27% in cash on the sidelines. We have a new pick coming in next few days so stay tuned!