NEW BEARISH Plays
Pan American Silver Corp - PAAS - close: 18.07 change: -0.58
Stop Loss: 18.80
Current Gain/Loss: unopened
Entry on December xx at $ xx.xx
Listed on December 05, 2012
Time Frame: 3 to 4 weeks
Average Daily Volume = 1.6 million
New Positions: Yes, see below
Why We Like It:
Silver is losing its luster. Shares of PAAS and the price of silver both topped out this fall. After spending weeks failing to breakout higher both have reversed lower. Now after a two-week consolidation sideways both silver prices and PAAS are poised to breakdown into the next leg lower.
The November low for PAAS was $17.79. I am suggesting a trigger to open small bearish positions in PAAS at $17.75. If triggered our target is $15.55 but more conservative traders may want to exit near $16.00 instead.
We want to keep our position size small to limit our risk.
Trigger @ 17.75 *Small Positions*
Suggested Position: short PAAS stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the 2013 Jan $17.50 PUT (PAAS1319m17.5) current ask $0.75