Silver options are cleared through the CME, trading under the symbol SO. The value of the options is tied to the price of silver futures, which also trade on the CME.
You can view our VQScore top-rated stocks now by entering your email below:
March, May, July, September, and December. Additional contract months - January, February, April, June, August, October, and November - will be listed for trading for a period of two months.
A month option is added on a July and December cycle. The options are American-style and can be exercised at any time up to expiration. There are two types of options, calls and puts. A call gives the holder of the option the right, but not the obligation to buy the underlying futures contract.
Conversely, the put gives the holder the right, but not the obligation to sell the underlying futures contract. Puts are usually bought when the expectation is for neutral or falling prices, a call is usually purchased when the expectation is for rising prices. The price at which an option is bought or sold is the premium.
Trading is conducted for delivery during the current calendar month, the next two calendar months, any January, March, May, and September thereafter falling within a month period, and any July and December falling within a month period beginning with the current month. The nearest five of the following contract months: In addition, a month option is added on a July - December cycle. Maximum Daily Price Fluctuation. Two minutes after either of the two most active months trades at its limit, trades in all months and in silver options will cease for a minute period.
Trading will also cease if either of the two active months is bid at the upper limit or offered at the lower limit for two minutes without trading. Trading will not cease if the limit is reached during the final 20 minutes of a day's trading. Trading will resume no later than 10 minutes before the normal closing time.
At the close of business on the third last business of the maturing delivery month. Second Friday of the month prior to the delivery month of the underlying futures contract. Two-month options - second Friday of the calendar month which is two months after the month in which the option is listed. On expiration day, the buyer has until 4: There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. A movement in the cash market would not necessarily move in tandem with the related futures and options contract being offered.
Call to begin trading today - International Investors call The Exchange offers cost-efficient trading and risk management opportunities.
Silver Futures Futures contracts are firm commitments to make or accept delivery of a specified quantity or quality of a commodity during a specific month in the futures at a price agreed upon at the time the commitment is made. Silver Options Because of the global nature of the metals markets, their prices can be volatile.
Silver Options on futures provide: A limit on potential loss to the buyer. The ability to hedge without foregoing the benefits of favorable price movements. Price Quotation Futures and Options: If at expiry the price of silver is above the strike price, your option expires worthless and you lose the premium you paid for the option.
Option prices are also based on ' Greeks ,' variables which affect the price of the option. It is not necessary to hold your option till expiry. Sell the put or call before expiry to lock in a profit or minimize a loss. The value of the options is tied to the price of silver futures , which also trade on the CME. The further the strike price from the current silver price, the cheaper the premium paid for the option, but the less chance there is that the option will be profitable before expiry.
There are 60 expiry times to choose from, ranging from short-term to long-term. Each option contract controls 5, ounces of silver. Buying physical silver requires the full cash outlay for each ounce purchased. Options trading requires a margin brokerage account which allows trading in options.
Interactive Brokers, TD Ameritrade and a number of other brokers provide this service. Silver options prices and volume are found in the Quotes section of the CME website, or through the trading platform provided by an options broker.
Call and puts provide traders with a less capital intensive way to profit from silver uptrends or downtrends respectively. If the option expires worthless, the amount paid premium for the option is lost; risk is limited to this cost.
Trading options requires a margin brokerage account with access to options. Calls and Puts Options allow traders to profit whether the price of silver rises or falls.
Silver Futures and Options COMEX Division
Silver options are option contracts in which the underlying asset is a silver futures contract. The holder of a silver option possesses the right (but not the obligation) to assume a long position (in the case of a call option) or a short position (in the case of a put option) in the underlying. Find quotes for CME Group provided Silver futures. Trading. Bitcoin Futures CME Bitcoin futures are now available for trading. New to Futures? Learn why traders use futures, how to trade futures, and what steps you should take to get started. Globex Options; Auto Refresh Is. Learn more about COMEX Silver futures and options, providing a reliable and flexible way to manage financial risk.