So zerohedge notes that a 100,000 block of July SLV 25 put traded. 10 cents. Delta = .03, yes. .03 at current prices, or 3000 stinking shares does the insinuation that this moved silver have any merit at all? I think they are full of shit
could be a lot of things, point is, that far out of the money is not likely to knock silver down $1 off the highs. but it makes for good press
I have never heard of option contracts being traded by the block, I believe the correct term is contract. Today's volume was over 100,000 contracts http://finance.yahoo.com/q?s=SLV110716P00025000 Shares can be traded in blocks, options in contracts, let's use the correct terms.
As long as I know a block trade can be stocks, futures or options. The 100k contracts are 100k contracts. What the OP was talking about was not 100k contracts but one 100k block trade.
zh was mocking this news. $1m notional enough to shank the market, no mention that it could be hedging a long, etc. They presented it as an example of propaganda and misdirection if anything. gotta read it through to the end for the real color. I think we are getting near the point where the rug gets pulled out, my DCAing at the coin shop is tapering off and Im getting cash ready to catch the sterling falling knife
When in-proper trading terms are used it shows a lack of knowledge and the rest of the story can be taken with a grain of salt. I assume you are quoting zerohedge and didn't come up with block instead of the proper term of contracts yourself. You should have noticed the mistake yourself instead of reposting it on ET.