Trade Alert – (WPM) June 2, 2025 – BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (WPM) – BUY

BUY the Wheaton Precious Metals (WPM) June 2025 $75-$80 in-the-money vertical Bull Call debit spread at $4.50 or best

 

Opening Trade

6-2-2025

expiration date: June 20, 2025

Portfolio weighting: 10%

Number of Contracts = 25 contracts

After a year of churning sideways, silver has finally managed a major upside breakout.

Confidence in US debt by foreign investors by the new administration in Washington DC, which has proposed withholding taxes on interest payments to foreign investors, capital controls, and even default. There is also extreme reluctance to invest in a country that has invested.

The US dollar has collapsed, eroding foreign interest further. Foreign capital is fleeing the US. Some $12 trillion of the $36 trillion in outstanding US debt is owned by foreign investors. There is a monster long bond issue in two weeks. I believe that the (TLT) will remain weak until then.

This is all a dream come true for owners of silver and gold, which is also breaking out today.

Stock players buy the (WPM) shares, which probably have a double in them over the next two years.

With the world looking for a “safe” trade, it is time to pour into precious metals.

I am therefore buying the Wheaton Precious Metals (WPM) June 2025 $75-$80 in-the-money vertical Bull Call debit spread at $4.50 or best.

Don’t pay more than $4.70 or you’ll be chasing.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 5 cents with a second order.

If you don’t want to sit in front of a computer screen all day or live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $4.50, $4.55, $4.60, $4.65, and $4.70. You should get done on some or all of these.

Wheaton Precious Metals Corp. is a multinational precious metals dividend streaming company, also known as a royalty trust. It indirectly produces over 26 million ounces a year via short-term options and contracts with mining companies all over the world, including Mexico, Portugal, the US, Chile, and Peru. It is, in effect, the best leveraged play on silver out there.

To learn more about the operation of Wheaton Precious Metals Corp, please visit their site by clicking here.

Silver is a great industrial play, and if you believe in the global economic recovery, you want to be loading the boat.

It is used in electronics and solar panels, which are about to get a big boost from the new president. Every Tesla requires 20 pounds of silver, which will increase production next year by 40% from 1.3 million to 1.8 million units.

And yes, it is still used for jewelry, which gets bought more during economic recoveries.

Silver tends to lag gold, which has already started to move. When it plays catch-up, it rises twice as fast as gold.

This is a bet that the Wheaton Precious Metals (WPM) will not fall below $80 by the June 20 option expiration day in 14 trading days.

Here are the specific trades you need to execute this position:

Buy 25 June 2025 (WPM) $75 calls at………….………..$16.00

Sell short 25 June 2025 (WPM) $80 calls at…………..$11.50

Net Cost:……………………..…….………..………….………….$4.50

Potential Profit: $5.00 – $4.50 = $0.50

(25 X 100 X $0.50) = $1,250 or 11.11% in 14 trading days.

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.