On the SLV daily chart, the 50 day Moving Average (thin green line) is setting up to cross above the 200 day Moving Average (thin blue line). This signal is called a Golden Cross and is very bullish. If you look at the shaded oval on the left, you will see the last Golden Cross which happened on 4/14/16. From that point, price went from $15.34 all the way up to $19.71 on 8/2/16. That is a 28.5% increase in less than 4 months. The middle oval shows what happened the last time price reached this area. Once the price hit $17.50, it quickly rose up into the high $19s. SLV is currently trading in a small range, but a Golden Cross could break it out to the upside very quickly.
The options that I am following will be the April 21/17 calls. Here are the current prices for each strike price:
Strike Bid Ask
17 .66 .68
17.50 .43 .45
18 .27 .29
18.50 .18 .19
19 .11 .12
19.50 .07 .08
20 .05 .06
The Spreads I am following would be:
Spread Cost
17/19 .57
17.5/19 .34
18/19 .16
