Silver Option Trader's Next Move: What's Brewing in the Market?
We wanted to share some thoughts on silver with you guys.
You know, we've been hunting for insights into this asset for the past few months and sharing the findings of our research and analysis (which, by the way, has been pretty solid - you should check it out).
So, let us explain. The first thing (#1 at the chart) we have here is some data on a specific option called "Butterfly" with an expiration date of July 25 - that's 43 days away from now. This is a pretty standard "Butterfly," so it's not really for insider trading. But the interesting thing is, despite the fact that there are still 43 days until expiration, the person who owns this option portfolio is closing his positions. In other words, he doesn't expect the price to return to this level in the short or medium term.
And then we have another level shown here (#2 at the chart), at strike price 25.
This strike caught our attention a few weeks back and we've been watching it like a hawk. The drop in open interest at that strike could mean that the downtrend might be over and we're waiting for a bounce, but it hasn't happened yet.
The volume of open interest around strike 25 has stayed the same, even with all the volatility in silver and all the ups and downs in the market.
Bottom line: the market sentiment is still bearish and we haven't seen any signs of a price turnaround yet.
You know, we've been hunting for insights into this asset for the past few months and sharing the findings of our research and analysis (which, by the way, has been pretty solid - you should check it out).
So, let us explain. The first thing (#1 at the chart) we have here is some data on a specific option called "Butterfly" with an expiration date of July 25 - that's 43 days away from now. This is a pretty standard "Butterfly," so it's not really for insider trading. But the interesting thing is, despite the fact that there are still 43 days until expiration, the person who owns this option portfolio is closing his positions. In other words, he doesn't expect the price to return to this level in the short or medium term.
And then we have another level shown here (#2 at the chart), at strike price 25.
This strike caught our attention a few weeks back and we've been watching it like a hawk. The drop in open interest at that strike could mean that the downtrend might be over and we're waiting for a bounce, but it hasn't happened yet.
The volume of open interest around strike 25 has stayed the same, even with all the volatility in silver and all the ups and downs in the market.
Bottom line: the market sentiment is still bearish and we haven't seen any signs of a price turnaround yet.
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