When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (SLV) – EXPIRATION
EXPIRATION of the iShares Silver Trust (SLV) June 2024 $23-$25 vertical BULL CALL debit spread at $2.00
Closing Trade
6-21-2024
expiration date: June 21, 2024
Portfolio weighting: 10%
Number of Contracts = 50 contracts
I am sending this out now, so I don’t overwhelm you with too many Maximum profit trade alerts on expiration day tomorrow, Friday, June 21.
With this trade, we really nailed the ballistic gains in (SLV) shares this month. This position is expiring a reasonable 14.91% in-the-money.
Just to be clear, this position does not expire until after the close on Friday, June 21.
As a result, you get to take home $750 or 16.00% in 15 trading days.
Well done and on to the next trade.
You don’t have to do anything with this expiration.
Your broker will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning, June 24 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock solid.
When all the best technology stocks are trading at close to rich all-time highs, what the heck are you supposed to buy?
Second derivative technology plays. What’s the best second derivative technology play out there?
Silver.
The white gold is benefiting enormously from the massive server demands of AI and the decarbonization of the grid. Every one of the one billion EV panels sold this year requires silver. And recovering economies even create more demand for silver as jewelry.
I am looking for a weakish June in the stock market and gold should catch a flight to safety bid. Interest rates continue to nudge down discounting a September rate cut which is very silver positive.
In the meantime, silver production has been almost level at 26,000 tonnes a year for the last decade. In 2023, only 23,000 tonnes were produced globally, setting up a potential short squeeze. The charts show that after a one-month rest, silver is ready to take off again.
If you can’t do options, buy the stock. My long-term target for (SLV) is $50, up from today’s $27.98.
The iShares Silver Trust (SLV) is a play on physical silver.
Silver is an investment much like other precious metals. It has been regarded as a form of money and store of value for more than 4,000 years. You can find silver relics of the Pharos used in Egypt’s National Museum at the foot of the Great Pyramid.
Silver lost its role as legal tender in developed countries when the use of the silver standard came to an end in 1935. Some countries still mint silver coins and collector coins, such as the American Silver Eagle with nominal face values. The main demand for silver was for industrial applications (40%), jewelry, bullion, and ETFs. Global silver reserves amounted to 610,000 metric tonnes at the end of 2023.
The (SLV) is part of the Blackrock family of ETFs, with $10.6 billion in assets under management, and an expense ratio of 0.50%. It is priced off of the open market for silver bullion traded on the LBMA, or the London Bullion Metals Exchange. The silver is held in the exchange vaults in London. The world’s largest banks are the market makers in the LBMA, including:
Citibank N A.
Goldman Sachs International.
HSBC Bank Plc.
JP Morgan Chase Bank.
UBS AG.
Morgan Stanley & Co International Plc.
The LBMA headquarters are next door to the Bank of England and down the street from my old office at Morgan Stanley in the City of London. LMBA holds 25,612 metric tonnes of silver, valued at $20.2 billion, which equates to approximately 823,451 silver bars. For more information about the LBMA, visit their website here.
For details about the actual holdings of The iShares Silver Trust please visit their website here.
This is a bet that the (SLV) will not fall below $25.00 by the June option expiration in 28 trading days.
Here are the specific trades you need to exit this position:
EXPIRATION of Buy 50 June 2024 (SLV) $23 calls at………….………$3.43
EXPIRATION of Sell short 50 June 2024 (SLV) $25 calls at….………$1.43
Net Proceeds:………………….………..………….….................................$2.00
Profit: $2.00 - $1.85 = $0.15
(50 X 100 X $0.15) = $750 or 16.00% in 15 trading days.
