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November 6, 2012  Tue 2:14 AM CT

SLV: SEE CHART GET CHAIN FIND STRATEGIES
The iShares Silver Fund has been falling for a month, but a large option trade is looking for a rebound.

Heading into the last hour of the session, a trader bought 5,000 July 38 calls for $0.73 and sold 5,000 July 22 puts for the bid price of $0.49, according to optionMONSTER's systems. The volume was multiples of the open interest at each strike, so this was a new combination trade.

The position cost $0.24 to open, which will be lost at expiration if the SLV remains between $22 and $38. The top end of that range is the fund's highest level since September 2011, while the low end was last seen a before that. If the stock is below $22, the trader faces the requirement to buy the shares. (See our Education section)

The SLV finished the day at $30.17. The exchange-traded fund was up 0.73 percent on the day but barely put a dent in its losses from Friday. Shares were up at resistance at $34 a month ago.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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