Silver Prices Are Pushing Higher. How Should You Trade the Precious Metal Here?

Consider buying a call option on December silver futures (SIZ25).
See on the daily bar chart for December silver futures that prices are trending higher and have just seen a bullish upside technical breakout from a choppy and sideways trading range at higher levels, to score a 13-year high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator has just produced a bullish line crossover signal, whereby the blue MACD line has moved above the red trigger line. My bias is that there is significantly more upside price potential for silver in the coming weeks or few months.
Fundamentally, risk appetite in the general marketplace is far from robust as geopolitical matters continue to simmer near the front burner — U.S. tariff threats, rising U.S.-Russia tensions and a still-shaky situation in the Middle East. That’s bullish for safe-haven metals, including silver. Also, the fact that gold (GCQ25) has reached record highs this year, while silver has not, suggests silver may still be a value buy even after recent price gains. The record high in silver prices is around $50 an ounce.
Consider buying a call option on December silver futures, with an upside price objective of $45.00 or above. The option expires in mid-November.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.