|Silver ETF Options
One more way to gain tremendous leverage in silver is through the use of options on ETFs. On several occasions I've
traded these options the last 10 days prior to expiration because silver tends to have huge moves during option
expiration weeks. The leverage offered by these options is second only to Silver Futures and if you are purchasing
the options your risk is limited to the amount you pay in premium.
Both SLV and SIVR offer options on their ETFs, but I would only trade SLV options because they are much more
liquid which usually means better execution prices. You can see by the chart below which is from Option Expiration
day that the activity and open interest in these options is quite impressive.
If you are an option trader, you will find these to be a fast paced and fun place to trade. If you are not
familiar with investing in options, this is definitely not the place to start investing in silver. Options are not
a good investment vehicle due to the constant time value decay, they should be used for trading purposes or for
short term price protection to hedge your silver investments.
SLV | SIVR
| DBS | USV
| AGQ | ZSL | SIL