Silver prices have been really impressive in recent weeks:
Silver prices and 1 month implied and historical volatility. Source: CBOE, Condor Options
Impressive for their lack of movement, that is. Since mid-February, silver has been in a tight range between $28.25 and $29.50. The price action alone has traders looking for a breakout in one direction or another. Fortunately, options are cheap enough that there?s no need to pick a direction. One month implied volatility is lower now than at any time in the last several years.
Additionally, the steep term structure in silver options makes it even easier to put on a long volatility trade without just buying a straddle:
Silver futures IV term structure. Source: CME, OptionWorks
I have written up the details of a trade idea in the subscribers area of the site.
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