Silver followup from last night's post. Notice the confluence of fib targets that it hit nearly to the cent.
Three potentials, which is the unfortunate reality when you get overlapping corrective moves.
- 1. It's the top of B as shown and we're heading down lower toward spot/futures $28-$29.
- 2. We're in a bullish leading diagonal. If so, today's high would be the first wave having happened in a typical diagonal 3-wave pattern, and it needs to hold the support box below which would become the 2nd wave of the diagonal and a potential options buying opportunity for a short-term play.
- 3. This morning's high was merely a larger A wave of a longer upward correction that would target $33-$34. If so, it's valid as long as $29.75 holds.
Long story short, nothing high probability here. Likely pointing to continued chop at best, bearishness at worst, and proving that nothing major is likely to happen until end of the year or January. If $32.20 spot/futures can hold and today's high can be taken out, then something else might be happening and I can follow up then.
I sold everything of value for SLV calls right after the open. Sold all December and January strikes below $30. My long exposure is December and January $30, $31, $32, and $35 strikes, as well as my recently formed February and March positions which I'm hoping to add to. If we get the bearish scenario, I might even start forming summer 2025 positions.
I'm also buying SLV January $28 protective puts that are currently just shy of 50 cents. The lower target would be the $24 to $25.50 range and these would pay $2.50 - $4.00, or 5-8x on cost. I'll buy about 5-10% of my position worth.
