Traders betting on quick move in silver

RELATED QUOTES

SymbolPriceChange
SLV21.61-0.27

The iShares Silver ETF has been trading sideways for months, but yesterday it saw heavy traffic in upside options.

optionMONSTER's tracking systems spotted unusual activity the August 26.50 calls, which traded more than 10,000 times, mostly for $0.84 to $0.89. Those expire at the end of today's session, so traders are obviously looking for the metal to move in a hurry.

Calls lock in the price of buying the exchange-traded fund, which tracks the price of silver. The options can generate some nice leverage if the stock climbs, but they can lose all of their value from just a small decline.

There was plenty of activity in other strikes, like the September 28s, the August 27.50s, and the August 28s.

The SLV rose 1.56 percent to $27.39 yesterday. Calls outpaced puts in the fund by about 4 to 1, reflecting the session's bullish sentiment. Total volume in the name was almost twice its daily average.

(A version of this post appeared on InsideOptions Pro yesterday.)

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