PAAS is a great way to gain exposure to the silver market. If silver explodes higher to 50 an ounce which many expect to happen sometime this year, than you can expect Pan American Silver to reach towards record highs as well.
You can see on the chart below the price is right at resistance. I already own one hundred shares and on a break out I expect the price to pull towards 33 where I'll be selling calls against the position.
If you are looking for a little exposure but want to minimize risk, you can sell puts for April 14th. They are paying a good premium right now, and it means you get paid not to enter the market until the price drops to the price of your choosing. Selling options is an excellent way to limit risk and bring in income.
Also have a look at the general silver market chart.
Looks like we could be setting up for a nice rally here now that we've pulled back from 27. This would likely push PAAS up through that resistance, but you never know, knowing how metals are a top target for downward manipulation.
Happy Trading and Go Blurt!
-T&T
(charts compliments of tradingview.com and image credit dhgate.com)