Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 18, 2013  Thu 3:16 AM CT

SLV: SEE CHART GET CHAIN FIND STRATEGIES
A trader is looking for the iShares Silver Fund to remain range-bound after its free-fall earlier this week.

optionMONSTER systems show that the June 22.50 calls and puts each traded 6,600 contracts yesterday for $1.14 and $1.17 respectively. The volume at each strike was more than twice the previous open interest, so this is a new combination trade.

Both the calls and puts appear to have been sold in a short-straddle position, which would take in a profit of about $2.31 around that $22.50 level. The trade is designed to profit from range-bound trading and/or from actual volatility that is less than that implied by those options. (See our Education section)

The SLV was down 0.99 percent to $22.44, just above Monday's low and at its lowest levels since October 2010. The exchange-traded fund has fallen from $27 a week ago as the price of silver and gold has plummeted.

More than 254,000 SLV options traded yesterday, compared to the daily average of 116,000 in the last month. 
Share this article with your friends


Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

When to listen (and not talk)

Success is often built on listening. I just spent a few days on vacation with the family, with a number...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER