Best Stock on the Market

Call Spread on SLCA on 3/15/2013

Trend Line on SLCAU.S. Silica Holdings (SLCA) engages in the mining, processing, and sale of commercial silica in the United States. It operates in two segments, Oil & Gas Proppants and Industrial & Specialty Products. The company offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products.

It also provides ground commercial silica products for use in plastics, rubber, polishes, cleansers, paints, glazes, textile fiberglass, and precision castings; and fine ground silica for use in premium paints, specialty coatings, sealants, silicone rubber, and epoxies.

In addition, the company offers other industrial mineral products, such as aplite, a mineral used to produce container glass and insulation fiberglass; calcined kaolin clay, a mineral primarily used as a functional extender in paints, plastics, specialty coatings, and rubber; and adsorbent made from a mixture of silica and magnesium for preparative and analytical chromatography applications. 

Shares have been great performer this year. The firm used the strength to sell 8.5 million shares with an option for selling an addiitional 1.5 million shares. The secondary pushed the shares lower to its upward trend line. Now that the shares have been sold, it appears that shares are ready to climb higher following its uptrend line. 

52-Week Trading Range:  $9.02 - $28.50

Last Trade: $21.79

Trade

  • Buy 1 April $20.00 Call at $2.50
  • Sell 1 April $25.00 Call at $0.60
  • For a net debit of $1.90

Profit/Loss Analysis

  • Breakeven at $21.90
  • Maximum profit is $310.00 at strike of $25.00
  • Maximum loss is ($190.00) at strike of $20.00

Closing Summary

  • Sold 1 April $20.00 Call at $4.10
  • Bought 1 April $25.00 Call at $0.80

Position closed on 3/21/2013 at price of $3.30 with a 73.68% gain in 5 days.

Updates

3/21/2013 10:27:39 AM

We are closing SLCA option position with great results. Selling SLCA $20 Call option at $4.10. Buying SLCA $25 Call option at $0.80.

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