The iShares Silver Fund is falling fast this morning after gapping higher yesterday, and a large trade appears to be looking for more downside.
The SLV is down 1.79 percent to $28, giving up much of the previous session's gains. The exchange-traded fund had been trending lower from above $36 in the last three months.
A trader bought 8,000 October 25 puts for $1.08 against open interest of 1,847 while selling 8,000 October 35 calls for $0.68, according to optionMONSTER's systems. The call volume was less than open interest at that strike, so it could have been an opening or closing transaction.
Given the data and the price action in the fund, this appears to be a combination trade aimed at getting short the SLV. (See our Education section)
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Why trader is selling calls in silver fund
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