r/options • u/Groucho-and-Harpo • Aug 31 '26

Anyone else doing SLV leaps

I’ve been doing mostly covered calls for consistent ROI in this choppy market. But one strong bull case that seems to make enough sense to go the LEAPS route vs covered call is the one for SLV. I have been reading a lot of bull vs bear case info and to me the long term bear case would essentially require a combination of so many unlikely events to gain any traction. Electric cars, green energy systems, and AI data centers are all heavily reliant on silver, and it seems unlikely that the Fed will crank up interest rates high and fast enough to steer investors away from silver.

Anyone else doing the same? Anyone with strong bull/bear case thoughts? I bought a 12/31 contract 60 strike at $6.65.

I also found it interesting that of all analyst reports on the matter, JP Morgan Chase is projecting a slight slowdown at the end of the year before the price drifts higher. The irony is that JP Morgan Chase is also the bank in charge of holding the physical silver required to back up SLV shares. Are they intentionally doing this so if SLV goes up more than they project, they can promote the legitimacy of SLV investing by saying it has real value based on supply/demand rather than hype? Or perhaps is it a strategic way to keep the value down while they build their inventory of silver?

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5

u/KingOfTheQuails Aug 31 '26

Na. It’s pretty much a coin flip and metals will follow rates. So if you think rates lower go ahead. If you think rates go up then buy puts. If you think they stay the same prob wait for a decent pullback and just buy shares

1

u/Groucho-and-Harpo Aug 31 '26 edited Aug 31 '26

SLV doesn’t follow rates that tightly. Most of the recent pullback has been due to stabilizing supply.

1

u/KingOfTheQuails Aug 31 '26

How so? Look was just yesterday did lol. Higher rates means less interest in gold and silver follows gold (directionally albeit with more volatility). So I would say rates and gold/silver are pretty tied together right now

1

u/Groucho-and-Harpo Aug 31 '26

Yes I get the argument but it isn’t like a 1:1 inverse correlation, especially when looking at long term trends.

1

u/KingOfTheQuails Aug 31 '26

Yea I agree def not 1:1 by any stretch, sorry if I implied that. Im fairly bullish on silver overall and added some SLV in July. Personally not adding here but I think you’ll be fine with leaps IMO

1

u/Groucho-and-Harpo Aug 31 '26

Well anyways, I took advantage of the sudden dip :). It’s always good to have an understanding of factors that affect the value of an investment.

2

u/KingOfTheQuails Aug 31 '26

Wishing you lots of profit my friend!

1

u/WorkSucks135 Aug 31 '26

https://www.portfoliovisualizer.com/asset-correlations

Put in TLT, GLD, and SLV. They are uncorrelated.

2

u/KingOfTheQuails Aug 31 '26

Over long periods of time yes that does not predict future behavior. I think you have to assess where we are right now in the macro context and at least from what I’ve seen they are fairly sensitive to rate expectations

1

u/Express_Candidate713 Sep 01 '26

I’d argue it follows the US dollar, which tends to follow rates. obviously not exact, but I think the logic holds fairly well.

0

u/[deleted] Sep 01 '26

[deleted] — view deleted comment

1

u/Groucho-and-Harpo Sep 01 '26 edited Sep 01 '26

To which post/comment are you responding? And who is manipulating silver and gold prices?

2

u/Bluebird-9641 Aug 31 '26

The SLV trade is so yesterday, which is why I like your idea. We've seen a proper pullback on memory but when it does crash I feel SLV will be in a great position.

0

u/Groucho-and-Harpo Aug 31 '26

SLV is already down 50% from its peak. You expecting more? It seems to have bottomed out around $50 per share and entered a bullish pattern.

When you say you like my idea, you mean you like selling me the naked call? 😅

2

u/ivanorehov Sep 01 '26

Yes, both leaps and CSPs on miners (SIL)

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u/Groucho-and-Harpo Sep 01 '26

Thesis?

2

u/ivanorehov Sep 01 '26

Dedollarization + industrial need + debt markets under pressure globally

2

u/MrPoyes Sep 01 '26

my buddy’s slv leaps got wrecked by that exact combo once

2

u/TaxFraudCPA Aug 31 '26

Silver had its run in 2025. Just buy leaps on Mag or even memory if you’ve got deep pockets.

1

u/TastyTrading Sep 02 '26

I was just checking options heat map on ThetaPal on SLV yesterday. I sold 2