Buy Alert: June 20, 2014

Marcus Haber | June 20, 2014

Buy Alert: June 20, 2014

Trade Details

Buy First Majestic Silver (AG) July $10 Calls for $0.75 or better

Why?

The situation in Iraq and the recent FOMC meeting has set a fire under precious metals. Over the last week, gold is up around 3.5%… but silver is up over 6% during the same span. Clearly, silver is outperforming gold. And, I believe this trend will continue.

AG, a mid-sized North American silver miner with a focus on Mexico, has climbed sharply on the boost to silver prices. However, it’s one of the few bigger silver companies that hasn’t yet breached its 200-day moving average. That makes it an attractive call buying opportunity.

Even if silver drops a bit before resuming its climb, AG calls are so cheap, it won’t have much impact on us. Meanwhile, we don’t want to miss the run in silver should it keep going immediately. Buy your AG calls here.