$SLV Put Options Setting Up For 2010, Active From Feb-April (Silver ETF)

The silver ETF ($SLV) had interesting put activity today.  SLV put/call activity was on the most active/top bearish list at the ISE.  SLV had an ISEE ratio of 2, puts/calls opened = 52,561/1,087.  CrimsonMind.com had this..

"40,000 Jan 15 puts traded at $0.04 (bid:0.04 ask:0.05), approximately 20,000 Feb 15 puts were purchased for an average premium of $0.23 per contract and 20,000 April 15 puts were purchased for an average premium of $0.53. Total of 85956 puts traded compared to the 10 day average volume of 11170. Total of 7600 calls traded." (CrimsonMind Activity Watch)

I found info on the trades at OptionMonster (webcast) and TheOptionsInsider. It looks like the SLV trade was bearish or protective going into 2010 and could be a roll from January.  Here is the pic of the option chain from Yahoo Finance.

SLV (Silver ETF) $15 February Puts Opened (Courtesy of Yahoo Finance)

SLV $13-15 April Puts

If $SLV doesn't get back over the 50dma and/or breaks below support, this could head to $16 support or even $15 which is the 200 day moving average.  If volatility rushes into SLV on a sell off it could benefit the puts.  Or this will be one big write-off, we'll see.  I'd watch the US Dollar, yields, $SLV relationship going forward.

$SLV (iShares Silver Trust ) Courtesy of Stockcharts.com