Question for ten horses

[2kids10horses]

It looks like you timed your purchase just about perfectly! Well done!

I have no idea about the fundamentals of trading Silver.

But, looking at the one year chart, I see significant resistance at $34. Maybe you do, too. However, the rising trend channel it's in is pretty powerful. It may continue on up in that channel for a while.

That said, it is a steep channel! No way can that be sustained forever. It WILL top out sometime.

What would I do? If I wanted to protect my profit, I might draw a trendline that connects the bottom of the lows of the current uptrend line. Then, determine what would constitute a "Break" in the trend. So, if it dropped below 32.25, it may be rolling over.

Then again, it may go on up.

It's currently selling for 33.71.

I'd set a trailing stop loss order at 32.24. Give it about a point and a half of freedom.

A "Trailing Stop" means that if the stock goes down to $32.24, it will get sold. But if it goes up, to $35, for example, a new stop will be created at $33.50, if you set it to have a 1.5 point stop loss. THat is, the stop will rise as the stock goes up.

You can set these up for a day, or a "good till cancel", which really means a month.

Rovo does this kind of thing, too.

Sorry, I don't have an options play for you. Maybe Dan Shirley can think of something.

If (when) you get stopped out, then you can examine the charts to figure out a good "buy back in" plan.

Or, if you're really wild and crazy, you can use the inverse ETF to make money on the downtrend.

Good luck!

This will let the stock run up (if it is going to) or sell you out (if it drops).

[Ombud]

You could always sell a put if you anticipate future growth due to industrial uses. Puts can be for anywhere from 1 week to 3 months and you can sell them when rated option level 0. Be aware that trailing stops can stop you out if there's a wild day (I still use them).

[Deleted]

Actually Options (PUTs & CALLs) can be from a Week (on Select Securities) to 2 Years out in Duration.
Also, Depending on the Security that is underlying the Option Can be Either AMERICAN STYLE or EUROPEAN STYLE. The Difference between the 2 is the When and How they can be assigned/exercised.
In The US (Unless this has changed) Options written directly against an Index are EUROPEAN STYLE.