Silver Wheaton Corp. - SLW - close: 40.94 change: +0.99

Stop Loss: 38.85
Target(s): 46.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
SLW is not actually a miner but a silver "streaming" company. SLW makes an up front payment (investment) into the mine of another company and they get the right to buy a portion of the silver production. Naturally, rising silver prices should mean strong profits for SLW. Currently the stock is poised to breakout past resistance in the $41.40 area. If the FOMC comes out with some sort of stimulus package there is a chance that the dollar declines and precious metals rise.

I am suggesting we use a trigger at $41.55 to open bullish positions on SLW with a stop loss at $38.85. Our first target is $46.00.

Trigger @ 41.55

Suggested Position: buy SLW stock @ 41.55

- or -

buy the OCT $42 call (SLW1122J42) current ask $1.64

Annotated chart:

Entry on September xx at $ xx.xx
Earnings Date 11/08/11 (unconfirmed)
Average Daily Volume = 6.5 million
Listed on September 20, 2011