iShares Silver Trust (NYSE:SLV) March 12th Options Begin Trading

shares of iShares Silver Trust (NYSE:SLV) reached at $24.72 price level during last trade its distance from 20 days simple moving average was 2.64%, and its distance from 50 days simple moving average was 6.20% while it has a distance of 18.55% from the 200 days simple moving average. Investors in Ishares Silver Trust (Symbol: SLV) saw new options become available today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SLV options chain for the new March 12th contracts and identified one put and one call contract of particular interest.

The put contract at the $24.50 strike price has a current bid of $1.73. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $24.50, but will also collect the premium, putting the cost basis of the shares at $22.77 (before broker commissions). To an investor already interested in purchasing shares of SLV, that could represent an attractive alternative to paying $24.63/share today.

Because the $24.50 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.06% return on the cash commitment, or 59.94% annualized — at Stock Options Channel we call this the YieldBoost.

Below is a chart showing the trailing twelve month trading history for Ishares Silver Trust, and highlighting in green where the $24.50 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $25.00 strike price has a current bid of $1.74. If an investor was to purchase shares of SLV stock at the current price level of $24.63/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $25.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.57% if the stock gets called away at the March 12th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SLV shares really soar, which is why looking at the trailing twelve month trading history for Ishares Silver Trust, as well as studying the business fundamentals becomes important. Below is a chart showing SLV’s trailing twelve month trading history, with the $25.00 strike highlighted in red:

Considering the fact that the $25.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 51%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.06% boost of extra return to the investor, or 59.97% annualized, which we refer to as the YieldBoost.

The implied volatility in the call contract example above is 58%.

Liquidity:

The stock has a market cap of $0 with 0 shares outstanding, of which the float was 0 shares. Analysts consider this stock active, since it switched Trading volume reached 149,993,057 shares as compared to its average volume of 28.31M shares.

The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.

But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. SLV’s relative volume was 5.30.

Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.

iShares Silver Trust has an average true range (ATR) of 0.71. Other technical indicators are worth considering in assessing the prospects for EQT. SLV’s price to sales ratio for trailing twelve months was 0 and price to book ratio for most recent quarter was 0, whereas price to cash per share for the most recent quarter was 0.

The Company’s price to free cash flow for trailing twelve months was 0. Its quick ratio for most recent quarter was 0. Analysts mean recommendation for the stock was 0. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

iShares Silver Trust‘s shares owned by insiders remained 0, whereas shares owned by institutional owners are 0.

Meanwhile, SLV traded under umbrella of Financial sector, the stock was traded -9.75% ahead of its 52-week high and 127.62% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.

Clark Joseph

About Clark Joseph

It's Clark Joseph and a well-known professional writer with over 8 years’ experience in finance issues. I maintain a finance website where readers can get valuable information about the stock market and helpful predictions. I have mentored many writers hoping to make a career out of writing. I studied finance in the University of Leading and graduated with honors. My wife is also a finance specialist and is also a professional writer.

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