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Vote of confidence in Silver Wheaton

Mike Yamamoto (mike.yamamoto@optionmonster.com)

A trader is counting on a floor beneath shares of Silver Wheaton through the end of this coming summer.

optionMONSTER's tracking systems show that some 7,000 September 28 puts were sold yesterday afternoon as premiums fell from $0.74 to $0.67. These are clearly new positions, the volume dwarfed the strike's open interest of just 92 contracts at the beginning of the session.

The put sellers are looking for the stock to stay above $28 through expiration in mid-September. If SLW falls below that strike price, the traders will face the obligation to buy shares. (See our Education section)

SLW rose 1.88 percent yesterday to close at $36.77. The mining stock hit resistance at its 100-day moving average above the $37 level last week and pulled back along with the price of silver.

Silver Wheaton is scheduled to release fourth-quarter and 2012 results on March 22. Before then, the company is scheduled to present at the BMO Capital Markets Conference on Feb. 24 and the PDAC International Convention, Trade Show, and Investors Exchange on March 2.

Total option volume in the name surpassed 21,700 contracts yesterday, double its daily average in the last month.

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