SLV - married put

As I had written during the weekend, I am very bullish on silver. I expect it to be in the triple digit eventually. However, the metal could see a correction to 30 and even 28.

Currently it is trading in a nice channel with 41.5 as resistance and 36 as support.

Trade:

BTO  500 shares  = 38.4
BTO Sept 37 P = 1.39

PE: Let the stock run

If ETF crosses 40 - add a 35 Sept SP to make it a put calendar below.
If price held at 40-41 and show some short term reversal, add a near term SC - 1 or 2 strikes OTM

SE: I intend to trade this bullishly longer term. So if the price drops below 36 - roll the SP down. If it goes bearish, I will take profit on the Put when it is close to expiration and buy a lower strike longer term put while adding more shares. Alternatively, I can let the SP be assigned with shares.

I have purchased only 500 shares. I am prepared to buy more if there is a correction to around 30.

Longer term, I expect to make at least 50% in 6 months.

Update - August 17th.

SLV does not seems to move as fast I as expected.

I added a Sept 40 SC to make it a collar at 1.43