08 May 2013

A Rather Large Long Bet on Silver Made As the Futures Took the Price of the Metal Lower

About the time that spot silver was smacked lower by the action in the futures markets, some punter placed a rather hefty bet on a near term 'out-of-the-money' May 18 calls on AGQ, the ultra silver long ETF.

It was trading around 25.50 at the time.

It *could* be a hedge on some silver short, but it is a rather hefty one given the strike and the timeframe.

Of course this is a pittance compared to the bets being made in the barely regulated and highly opaque derivatives markets.