NaughtyPines

OPENING (IRA): SLV JANUARY 15TH 18.5 SHORT PUT

AMEX:SLV   ISHARES SILVER TRUST
... for .48/contract.

Notes: Selling some more SLV (30-day at 47.7%), as well as collating my "ladder" into a single post. Will add in a December monthly "rung" once that becomes available, assuming the volatility hangs in there. Collected 1.74/contract in total.

Here's the way I look at this trade relative to one put on in GLD:

Currently, GLD is trading at 178.16, SLV at 22.65, so GLD is about 8 times the notional value of SLV here. The November 20th GLD 15 delta 184 strike is paying 1.14; the November 20th SLV 14 delta strike at 19. .31 and 8 x .31 = 2.48. Consequently, you're getting more than 2 x "bang for your buck" in risk premium as a function of stock price in SLV than GLD here, primarily due to the differential between SLV 30-day IV at 47.7% versus GLD's 20.4%.

Trade active: Adding in a December 18th 20 rung for .43 here with 30-day at 49.1% and expiry-specific at 50.1%. Total credits collected of 2.22/contract.
Trade active: Out of the November 6th 19 for .05 today; scratch on the remainder at 2.17. Resulting setup: November 20th 21P/November 20th 18P/December 18th 20P/January 15th 18.5P. 30-day IV remains high here at 50.44, so will consider adding, particularly if we get some weakness.
Trade active: Out of the November 18 for .06. Scratch at 2.11. Resulting setup: November 20th 21P/December 18th 20P/January 15th 18.5P.
Trade active: Out of the November 20th 21P today for .10; scratch at 2.01. Remaining setup: December 18th 20P/January 15th 18.5P. 30-day remains decent here at 50.3%. Will add back in if we still have that IV coupled with weakness going forward.
Trade closed manually: Out of the the remainder for .25 total/contract here. 2.01 - .25 = 1.76 ($176) total profit per contract.

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