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Put seller bets on floor in silver fund

Chris McKhann (chris.mckhann@optionmonster.com)

Silver hit the lowest levels since 2010, but one large trader is apparently looking for a floor.

The total option volume in the iShares Silver Fund tops 73,000 contracts so far, already outpacing its total daily average. optionMONSTER systems show that the biggest single trade comes in the August 19 puts.

A trader sold 6,000 of those puts for the bid price of $0.60. The volume was more than 6 times the previous open interest, so this is a new position.

The put selling is a bet that the SLV will hold up above $19 through that August expiration. That sees an end to the selling but is certainly not bullish either, given the level it is targeting. (See our Education section)

The SLV is down 1.9 percent this morning to $21.02, off its session low of $20.81. Shares were above $26 just over a month ago and at resistance at $34 back in October. 

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