ET: Options Traders Step Up Bearish Bets on Silver ETF
Options traders have been betting heavily against a silver exchange traded fund this week as the metal ETF has followed the commodities sector lower.
Trading of bearish options contracts Tuesday on iShares Silver Trust (NYSEArca: SLV) surged to nearly four times the average over the past month, driven by a single trade for a second day, Bloomberg reported.
An options trader on Monday placed a $1 million wager the silver ETF will decline 37% by July. The iShares Silver Trust is up nearly 30% year to date but some traders are positioning for a correction after the ETF’s strong run. A newsletter recently warned that when the silver ETF pullback arrives, it could be “harsh and swift.”
