2/22/2011 10:15 AM
3 Stocks to Watch: Best Buy, Freeport-McMoRan Copper & Gold, and Silver Wheaton
Silver Wheaton faces round-number resistance
by Jocelynn Drake (jdrake@sir-inc.com):
"Options speculators jumped on Silver Wheaton (SLW) on Friday, as 126,200 contracts crossed the tape. This surge in volume was triple the stock's average daily option volume of 40,870 contracts, according to data from WhatsTrading.com. In addition, traders were feeling optimistic, as 71% of the volume changed hands on the call side.
Call trading has accelerated on the ISE, CBOE, and PHLX recently. During the past 50 trading sessions, 3.1 SLW calls have been purchased to open for every one put purchased to open. This ratio of calls to puts is higher than 60% of all those taken during the past 52 weeks.
Meanwhile, short interest is depleting on the stock. During the past month, the number of SLW shares sold short dropped by 15.7% to 3.9 million, accounting for only 1.1% of the company's total float.
Furthermore, Wall Street favors the stock. According to Zacks, SLW has earned seven "buy" ratings and five "holds."
Technically speaking, the shares of SLW are roughly flat on the year, after spiking above resistance at their 10-week moving average last week. The equity is now attempting to conquer the round-number $40 region, rallying more than 4% this morning after a manager of the Sunares Sustainable Natural Resources fund predicted more upside for commodities prices"...
SOURCE / LINK / QUELLE dieses Ausschnitts:
www.schaeffersresearch.com/commentary/...=105143&obspage=2
Den Vorhang AUF, der Krimi geht weiter...