Silver (SLV) markets are seemingly comfortable with the $16 level, but seem to have trouble getting too far from that level. So we believe that a lot of short-term opportunities will persist in the silver markets, and that buying calls below $16, and buying puts above the same level will be the way to go. Give the markets about 20 – 30 cents leeway, as those could be your boundaries.
The FTSE initially tried to rally during the course of the day on Thursday but ended up forming a shooting star, which is one of them was bearish candlesticks that you can get. On the chart, you can see that we are buyers of puts below the 6800 level, and buyers of calls above the 6900 level. In between these 2 levels we consider it to be “no man’s landâ€, and will stay out of the market.
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Finally, Citigroup (C) trying to rally during most of the session, but found quite a bit of resistance above the $57 level. With that being the case, we are simply going to buying calls somewhere above the $56 level, as it gives us an opportunity to buy momentum. We have no interest whatsoever in buying puts as the market has broken out to a fresh, new high. Now is simply a matter of finding a bit of a bounce on a short-term chart in order to start buying those calls yet again.
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