Silver ETF (SLV) – Precious Metals Breakout – Nov 9th, 2020
Bullish – SLV – $23.79
Equity markets reacted with an extremely bullish response to the election outcome before this weekend’s calling of a Biden victory. The S&P 500 and Nasdaq-100 are trading within a few percentage points of its all-time highs. Investors have sent a clear message that the outcomes are positive for the markets. The VIX responded strongly in a massive retreat to its 22% percentile from 43% on Tuesday morning. This provides a rare opportunity to buy volatility for investors seeking opportunities over the next month.
SLV Trade Idea:
On CNBC’s OptionsAction show on Friday, Carter Worth reviewed silver’s recent strength. With gold’s breakout on many investor’s radar this week, SLV provides a highly correlated outlook with an ETF that is priced 7x less than GLD. SLV is knocking on its $24 resistance level after consolidating for 2 months, primed for a potential large breakout. Expecting a continuation higher in this elevated IV environment, Mike suggested selling a Jan $24 Put @ $2.09 Credit.
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