How Long-Term Trade Is Playing Silver

The iShares Silver Fund is just off its six-month high reached last week, but a long-term option trade is anticipating a decline.

The SLV is up 0.73 percent this morning to $33.17. The exchange-traded fund touched $34.05 on Friday, its highest price since its 52-week peak from February.

Today’s option activity is all the way out in January 2015, an expiration that is available only in a few underlying assets. The trader bought 13,000 of the 26 puts for $3.80 and sold 13,000 of the 38 calls for $5.10. The open interest in each strike was fewer than 1,000 at the beginning of the day, indicating that this is a new position.

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