Friday, June 17, 2011

Straddle on silver

Market tries to end this week in green but most likely will end flat.

Meantime I see a very good entry for a "straddle" on silver, strike price 35. The reason for this is that silver is pretty much trading in a range that gets tighter by day and "straddles" are getting cheaper and cheaper. Sooner than latter it's very likely that silver will go in either direction. You don't care if it's going strongly up or strongly down. The only way to lose money if it continues to stay in the 34-36 area. Anything above 36 or bellow 34 is going to make a nice profit.

The lower edge of the "triangle"  almost coincides with a very powerful uptrend line, the one that started on September 2010 at $18 per share!

By the end of the day I am going to make a weekly update on SPX and try to figure out what is most likely to happen next.


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