I got in CDE this morning at $20.60.  However, I changed up my strategy.  I know silver will be a big money maker but I don’t know short-term where it’s headed.  So I bought puts, that’s right, naked $20 puts at 55 cents.  Once it expires on Dec 19, I make some easy dough.  If that backfires, I end up owning the stock for $20 which is a discount of 60 cents.  It ended the day at $20.80 so it looks like my naked put is already doing well.

Last week the US dollar got weak with the economic reports of better unemployment rates and job growth.  I expect even with the better economy we will have to have a weaker dollar.  You can’t justify a strong dollar when the FED is producing billions of dollars to stimulate the economy.  Once of the gold guys stated that gold could up to $8,000.  I don’t expect that to happen but you never know.  This is the first president to break the deficit within three months.  It usually takes a president at one-term (4 years) to break the deficit.

CDE, Coeur d’Alene, released the third quarter earnings earlier this november.  The numbers were not what analysts expected and the stock plummeted to below $19.  Of course, gold and silver kept rising so the stock just had a temporary dip before breaking $23.  If you read the third quarter transcript, the CEO Dennis Wheeler stated they invested the company for $900 gold.  Gold is now over $1,100.  You can bet that their next quarter will be a smashing hit.  They have more mines coming into production than any other junior mining company.  They also are highly invested into silver which will rise with gold and bring up their revenues.

Long-term great trade!