Consider buying a call option on December silver (SIZ25) futures.
See on the daily bar chart for December silver futures that prices are trending higher and are pausing not far below this year’s high. This pause is not bearish and suggests bulls are storing energy for another push higher in the not-too-distant future. It is my bias that the silver market will continue to rally and has a good chance to hit a new record high in the coming months.
Fundamentally, the geopolitical scene is not on a full boil at present, but several elements are still simmering and could become hotter quickly. Also, history shows the months of September and October can be turbulent for the stock and financial markets. These factors may continue to drive safe-haven demand to silver in the coming weeks/months.
Consider buying a call option on December silver futures, with an upside price objective of $45.00, or higher. The option expires on November 24.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
