OSG and PAAS

I bought a couple options today.

My order on OSG got filled at 7.00. That is a July 85 Put option. OSG is Overseas Shipholding Group. The shipping sector formed bearish engulfing and shooting star candles yesterday and I think a decline is likely.

I also bought a July 30 Call on PAAS which is Pan American Silver Corp. Entry price was 6.70. I already have an option on NEM which is a gold company. Precious metals futures and the mining stocks all tend to move together. The silver stocks are showing similar patterns to the gold stocks. This stock is moving up off a hammer candlestick reversal. The stock is currently at 36.00 so this is an in-the-money option that does not have to move a lot to breakeven. The precious metals group performed well in the fall and winter market declines. They are more driven by inflation issues, and have less correlation (especially recently) with the broader equity markets. So even if the markets decline, I think gold and silver will do OK or great.

Pete