First Week Of September 21st Options Trading For Endeavour Silver (EXK)

First Week Of September 21st Options Trading For Endeavour Silver (EXK)

Investors in Endeavour Silver Corp (EXK_) saw new options become available this week, for the September 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the EXK options chain for the new September 21st contracts and identified the following call contract of particular interest.

The call contract at the $5.00 strike price has a current bid of 5 cents. If an investor was to purchase shares of EXK stock at the current price level of $3.80/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $5.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 32.89% if the stock gets called away at the September 21st expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if EXK shares really soar, which is why looking at the trailing twelve month trading history for Endeavour Silver Corp, as well as studying the business fundamentals becomes important. Below is a chart showing EXK's trailing twelve month trading history, with the $5.00 strike highlighted in red: 

Quality article on my one of my favorite Silver Mining Corps. Endeavour Silver (EXK).  Endeavour closed today at $ 4.14 for a Change of +0.15 +3.76%. Endeavour in my opinion is a $20 to 22 dollar stock. I decided to buy the equity and avoid options with Endeavour Silver, I want  this one as a long and will dollar cost average the dips.. 

As always only invest of which you plan to lose.

Realated:http://www.marketwatch.com/story/endeavour-silver-adjusts-second-quarter-2013-revenues-12-higher-second-quarter-2013-financial-results-to-be-released-tuesday-august-6-2013-07-15

VANCOUVER, BRITISH COLUMBIA, Jul 15, 2013 (Marketwired via COMTEX) -- Endeavour Silver Corp. CA:EDR +3.66% EXK +3.76% announces that the Second Quarter 2013 revenues reported on July 10, 2013 were understated by 12% due to the marking to market of certain concentrate sales that had already received final pricing during the quarter.

The revised revenues for Q2, 2013 are $71.3 million, a new quarterly record for the Company, up 76% from Q2, 2012. The realized metal prices were also understated and have been revised upwards to $21.38 per ounce (oz) silver and $1,297 per oz gold sold (see revised table of Q2, 2013 operating results below).