Lower volatility seen for silver fund

optionMONSTER

Silver is bouncing along with gold today, but the big trade in the iShares Silver Trust is looking for lower volatility in coming months.

A single print for 30,750 May 27 puts traded for $1 in volume far above the previous open interest of 467 contracts, so it is a new position. The puts appear to have been bought at the ask price on a penny-wide spread, according to optionMONSTER systems.

Just after the puts traded, a block of 1,257,750 SLV shares changed hands for $27.70. That was $0.10 less than the prints immediately before and after, showing that the shares were sold. So it seems that this is a delta-neutral strategy looking for less volatility ahead. (See our Education section)

The SLV is up 0.76 percent to $27.80 this afternoon after falling every day for the last week, coming down from $31 since the start of this month. Shares are at their lowest levels since August.


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