RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Optimism in Silver

Posted 02/08/2019 8:02AM CT | Tom Beller

As the silver market has pulled back from $16.20 per ounce, it’s felt that this is a temporary pause in a run higher up. Many fund managers and longer-term traders have forecast a bullish sentiment looking into the year.  The thought is that the U.S. dollar is going to having a difficult time moving forward, which will add support to an already positive situation for money that has left the equity markets.

With Brexit and slowdown in global growth it is believed that the global market is interested in silver. With all these geopolitical issues, given enough time and data to absorb global economic numbers, it warrants people will continue to turn to metals as a safe haven. 

All the way around there is a complete bullish outlook and optimism with $17.25 a price target. Take a hard look at the options or call to discuss option strategies that could facilitate a neutral to upward bias this year.  Implied volatility is not too high coming in at around 14 percent.  There are many strategies to take advantage of the sentiment that coincides with the outlook where your position in the market is fixed, without having to deal with the emotions of the ebbs and flows of the volatility.  Consider call spreads, butterfly’s, or possibly a wide risk reversal selling a put and buying a call.  Options offer you a variety of strategy depending on your risk tolerance.

Silver Mar ’19 Daily Chart

Silver Mar '19 Daily Chart

Tom Beller