ACE Silver - April 19, 2020

Below is an illustration trading futures options on Silver.  Our post shows bullish and bearish positions using a combination of call and put options.

Trade Options on Futures

Silver * Directional & Neutral Positions

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Term Structure

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Contract Size - 5000 ounces.

Tick Size:  Outright: dollars and cents with 0.005 points=$25

Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 1:25 p.m. (5:00 p.m - 12:25 p.m. CT)

* Tip: Understanding what the numbers mean when looking at Silver prices. The quotation you see is U.S. dollars and cents per $0.005 tick. Each contract you are buying or selling is price per ounce x 5,000 oz.  A 1 tick move is $25. Notional value of $15.005 / oz x 5,000 oz = $75,025 USD per contract.

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about Gold futures and options


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* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select view image. Be sure to click the back arrow on your browser to go back to the original page.

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here on enlarging images


Below are illustrations of a vertical swap as directional strategies both bullish and bearish.  These type of trades can be easily flipped as illustrated in our courses.  Advantage is low margin and where Vega is small to minimize impact of implied volatility.

The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.

Vertical Swaps

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