Trade Alert – (WPM) June 20, 2025 – EXPIRATION AT MAX PROFIT

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) – EXPIRATION

EXPIRATION of the Wheaton Precious Metals (WPM) June 2025 $75-$80 in-the-money vertical Bull Call debit spread at $5.00 or best

 

Closing Trade

6-20-2025

expiration date: June 20, 2025

Portfolio weighting: 10%

Number of Contracts = 25 contracts

Just to be clear, this position does not expire until 4:15 PM on Friday, June 20.

Like all successful trades, this one looks stupidly cautious with 20:20 hindsight and (WPM) trading at $91.68. That is up a respectable $11.68, or 14.68% above the nearest $80 strike price.

You don’t have to do anything with this expiration.

Your broker will automatically use your long position to cover your short position, canceling out the total holdings.

The entire profit will be credited to your account on Monday morning, June 23, and the margin freed up.

Some firms charge you a modest $10 or $15 fee for performing this service.

The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.

As a result, you get to take home $1,250 or 11.11% in 14 trading days. Well done, and on to the next trade.

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

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.

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

Here is the specific accounting you need to close out this position:

EXPIRATION of 25 June 2025 (WPM) $75.00 calls at…..…..……$16.68

EXPIRATION of short 25 June 2025 (WPM) $80 calls at…………$11.68

Net Proceeds:……………………..…….………..……….……………….……..$5.00

Profit: $5.00 – $4.50 = $0.50

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