Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
July 12, 2021 - (Gold Market Wire) - Silver continues on its road to nowhere, reverting, once again, to the $26.00 level, and, for the time being, looking prepared to go nowhere of importance. This is getting to be a feature in the markets. Endless vacillating around a pivot point (last time it was almost three weeks) followed by a huge lurch on way or the other. The professional options traders are the only ones making money - by selling volatility in the middle (at-the-money) and capturing inexpensive wings (out-of-the-money) as cover against a potential move. Right now, being short the $26.00 strike is the place to be...although it is only Monday. Those who 'called the stall' got all the Theta (time decay premium) over the weekend and are sitting happy. The chart shows the convergence at the $26.00 even when drawn from a handful of perspectives.
If we consider the horizontal, around $26.10, the trading range is small, and the premium sellers are sitting happy.
Now, of course, the task is to try and react when the market moves (good luck!), without trying to anticipate when it will move. Well, the options traders have shown, yet again, that in dull, listless markets, they are the ones who make money. When a market doesn't trend, the passage of time suits the 'butterfly' (short ATM long OTM) book well. It's been a month of almost no action - and the paint dryers are making hay. Let's see in New York can livin' things up.