Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 10, 2012  Wed 9:58 AM CT

SLV: SEE CHART GET CHAIN FIND STRATEGIES
Bearish plays dominate the unusual options action today, and the iShares Silver Fund is one of the biggest targets even as it rises.

The SLV is up 0.73 percent to $33.06 this morning after testing resistance at $34 for the last three weeks. But the previous rally off the 52-week lows below $26 in the previous two months was substantial, taking the exchange-traded fund back to levels last seen on the first day of March as it came off a high above $36 set the previous day.

Today's option volume is topped by a large combination trade in the January 2015 options. A trader bought 16,650 of the 26 puts for $3.55 and, at the same time, sold the same number of the 38 calls for $4.65. The volume was slightly more than open interest at each strike, indicating that this is a new position.

This combination trade takes in a credit of $1.10, which will be the profit at expiration if the SLV is between the two strikes. It could also be a collar on long shares in the SLV, protecting against a decline below $26 but giving up any gains beyond $38. (See our Education section)
Share this article with your friends


Related Stories

SLV

Short-term bullish trade on silver

April 7, 2014

A trader closed an expiring long position in the iShares Silver Fund on Friday and opened a new one that allows another week for a rally.

SLV

Bulls look for silver to break out

March 17, 2014

Traders are snapping up June calls in the exchange-traded fund is in the middle of its recent range between $20 and $21 for the last month.

SLV

Midday index, ETF option volumes

March 17, 2014

Total option volume is average so far today, dominated by the big indexes and ETFs, according to optionMONSTER data systems.

Premium Services

Education & Strategy

Using emerging markets as a hedge

I spend lots of time and energy pondering ways to hedge the market. Right now my instrument of choice is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER