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How to Trade Silver Options for BIG Profits InvestorEducation / Options & Warrants May 14, 2011 - 07:55 AM GMT By: J_W_Jones Hi-Yo Silver, Away , Last week silver was the focus of incredible price swings which left many licking their wounds and shaking their heads at the trading losses they had incurred. This sell off was likely triggered by the increase in margin requirements for futures contracts, but the stunning price decline extended to all vehicles like exchange traded funds use to trade the glimmering metal. I recognized the potential opportunity early in the week, and began to look at various position structures using options on Tuesday morning. One of the fundamental behavioral characteristics of options is the reaction of implied volatility to rapid price change. Books have been written to describe details of various option trade structures, and a discussion of all potentially useful strategies is beyond the scope of my mission today. The trade structure I chose to use was that of a calendar spread. J.W.
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