OptionsHouse

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


OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »