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Market: Silver Futures Options (SO)

Opportunity: Buy September ’20 Silver 1500 Put (SO) / Sell November ’20 Silver 1500 Put (SO) at a the current market price before July 9, 2020.

Specifics… 

  • Gross profit target is 11 points per spread.
  • Risk 5 points per spread.
  • Max hold time is until Oct. 19, 2020.
  • Current margin requirement for this spread trade is $1708.

[For example, assuming total commission & trade fees of $25 / round turn, this trade would yield a net profit of $500 if the trade is liquidated at the profit target. If the trade is liquidated at the risk target, the total loss would be $300*] 

Silver Futures Chart

Analysis…
Fundamentally, this is a seasonal / cyclical trade that has been profitable 12 of the last 15 years. After exiting long July contracts to avoid deliveries, bullish speculators and consumer-hedgers reinstate positions in the next most active contract and drive prices higher. Technically, Silver has moved into an upwards trend.

If have any questions or need assistance with this trade recommendation, please feel free to contact me directly.

If you don’t already have a futures trading account with Insignia Futures & Options, I invite you to open one today…

Best Wishes,

Joe Fallico

Principal Futures Broker
Series 3 & Series 30 Registered

Phone: 1-847-379-5000 ext. 101
Toll Free: 1-866-892-2030ext. 101

Insignia Futures & Options, Inc.

* Required disclaimer:
There is a risk of loss in futures trading.  Past performance is not necessarily indicative of future results.  Seasonal trades track historical price cycles and have the benefit of hindsight.  There is no guarantee that any seasonal trade will follow the same cycle as in previous years and as such, there is no guarantee of profit. The use of a stop loss order may not necessarily limit your loss to the intended amount.

 

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.