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Term Structure
Volatility
Notes:
Contract Size - 5000 ounces.
Tick Size: Outright: dollars and cents with 0.005 points=$25
Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 1:25 p.m. (5:00 p.m - 12:25 p.m. CT)
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Silver
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Strategies
Below are illustrations of a vertical swap as directional strategies both bullish and bearish. These type of trades can be easily flipped as illustrated in our courses. Advantage is low margin and where Vega is small to minimize impact of implied volatility.
The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.
Vertical Swaps
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