Volume in SLV options today is heavily concentrated in the January 2015 expiry calls, with the $30/$40 call spread trading a total of 75,000 times. It looks like the spread was purchased at a net premium of $0.19 per contract. The trade starts making money if shares in the SLV rally 58% over the current price of $19.12 to exceed the breakeven point at $30.19. Maximum potential profits of $9.81 per contract are available on the spread in the event that SLV shares jump 110% to $40.00 by expiration next year. The same Jan ’15 $30/$40 call spread traded 60,000 times on Friday as well. Shares in the SLV last traded above $40.00 back in September of 2011.
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