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Potential iShares Silver Trust (SLV) Trade Could Hit 6.67% Return

Jan 02, 2018 ( via COMTEX) --

After Dec 29, 2017aEUR(TM)s trading in iShares Silver Trust (<a href="">SLV</a>)'s option trade-picking algorithms uncovered a trade that offers a 6.67% or 8.40% (for comparison purposes only), while providing 9.13% downside protection. The trade is a Oct 19, 2018 covered call at the $15.50 level for a net debit of about $14.50. The net debit is also the breakeven point for this trade. For a higher return, consider buying a longer-term call option, like the Jan 18, 2019 at the $13 level. By buying the call for $3.54 instead of paying about $15.98 for the stock, the assigned return rate for this alternate trade is 19.60%, but the stock has to finish above $15.08 when the sold call expires for this trade to be profitable. Technical indicators for the stock have been bearish and support and resistance have been in the area of $15.80 and $16.25, respectively.

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