I previously posted an article/options play on Optionshoney.com regarding the huge sell off in Hecla Mining (HL) shares and argued that the sell off was overdone. Read more at http://optionshoney.com/2012/01/11/hecla-mining-pounded-on-huge-volume-lets-mine-the-honey-with-options/. I was looking for a bounce in the shares in the short term and that has come to fruition in the past week. HL is rallying over 4% this afternoon and is moving much higher alongside several other metals stocks and rare earth mining stocks.
What are my Options Honey??
I still like the HL Mar 17, 2012 $5 strike Call Options for around .30 cents a contract. Stay tuned for more and go bulls on HL!! Check out the 10 day chart below on Hecla Mining (HL) and you can see the big bounce in the shares after a huge sell off. Also in the chart, is Silver Wheaton (SLW), which is another top metals pick for me. I will discuss SLW in greater detail in posts to come shortly on Optionshoney.com.
Chart Courtesy of Fidelity Investments: