OptionsHouse

Options Trading News

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.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Problem with Trading Earnings

AP Options specializes in Swing Trading. Swing trading is the art of locating short term, quick, aggressive movements in a stock normally created by the technicals but, can be sometimes created by the fundamentals. These trades, at least in this service, last a couple of days to a week in the majority of cases.

View more education articles »