Gold may be the financial story of the morning but silver is down much more on a percentage basis, and one trader sees limited upside in the iShares Silver Trust.
More than 10,000 January 25 calls have traded in volume that more than double the strike's open interest of 4,852 contracts before the session. The calls were almost all sold at the bid price, with the big block of 5,000 going for $1.45.
These options could have been sold naked with an initial bearish bias, or they could have been traded against stock either as a delta-neutral play or as a covered call position. The latter would have a bullish bias up to that $25 level. (See our Education section)
The SLV was above $27 last week but today is down 10.76 percent to $22.56, outpacing losses in the SPDR Gold Shares Fund. The silver fund is now at it to the lowest since October 2010.
About 240,000 SLV options have changed hands so far today, with calls slightly outpacing puts. This compares to the daily average of 75,291 in the last month.
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