I have trading SLW for many years and currently still hold a large position of SLW. SLW has been trading in a range between ~18/19 and ~26 for the last 2 years. Currently, it’s trading at the lower end of that range. SLW also pays a dividend, albeit very small, ~1%.
An ATM covered call (Jan. 15, ’16, 19 strike) will produce 80% annualized return. Although SLW is trading below 50 and 200 SMA, the upside for SLW is much higher than the downside.
About admin
Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
