Options trading in iShares Silver Trust (NYSEArca: SLV) jumped on Monday as silver rallied close to its nominal high from 1980, according to reports.
Monday’s trading was tilted toward bullish call options to buy the silver exchange traded fund (ETF), The Wall Street Journal reported.
Call options with the right to purchase the silver ETF at $50 a share by mid-May were Monday’s most active contract, according to the report.
The nearly $17 billion silver ETF closed Monday at $45.83 a share amid heavy trading volume.
Reuters reported other trades in iShares Silver Trust on Monday suggest some options traders may be betting on a big correction in silver prices.
More than 1 million options contracts on the silver ETF traded Monday, or nearly four times the average daily turnover, while the bearish May $37 puts were among the most popular, according to the report. Some traders noted the activity could reflect hedging against existing long positions in the silver ETF.
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own SLV.