A trader is evidently so convinced silver is going to go through a major correct that whoever it was placed a $1 million bet it'll drop 37 percent by July.
Someone bought 100,000 puts, or options to sell 100 shares each of SLV at $25 by July, changed hands at the ask price of about 10 cents and exceeded the open interest of 6.054 outstanding contracts before today — indicating that a buyer of a new bearish position initiated the bid, according to a Bloomberg report.
While there is no doubt the upward price movement of silver will slow, as it's unsustainable at this pace, it's quite a bet to bid $1 million that it will drop 37 percent.
If it were to happen, silver is probably the place to put your money, as even though it's expected to continue its positive run, historically its very volatile and can move in wide swings, making it a possibility it could correct that much, although there seems to be support against that being a probability.
iShares Silver Trust closed Monday at $39.21, falling $0.65, or 1.63 percent.
Tuesday, April 12, 2011
iShares Silver (SLV) Falling 37% Says Trader
Labels:
iShares Silver Trust
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment