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I’ve been watching silver approach the $50 level, and while I’m bullish on where this metal is headed long term, I’m not interested in loading up on shares at current prices.
With the price of silver close to doubling since early April, here’s my thinking…
We could easily see a 10% to 20% pullback from these elevated levels before the next major leg higher. That’s just how markets work — especially after a breakout that’s gotten this much attention.
So instead of buying shares outright and sitting through potential volatility, I’m structuring a debit spread on the iShares Silver ETF (SLV) that costs roughly $2 and giving me $5 of potential profit if silver continues higher by January 2028.
That’s the kind of risk-reward setup I can get behind.
The Exact Trade Structure I’m Using
The trade involves buying the $45 strike and selling the $50 strike, going out to January 2028 expiration. This gives me nearly three years for the thesis to play out without forcing me to pay full price for shares right now.
What I like about this structure is the flexibility. If silver pulls back 10-15% in the short term, I’m not sitting on a losing equity position — I’ve got time and defined risk. And if silver keeps running toward $60, $70 or higher, I’m positioned to benefit without the full capital commitment.
Here’s something else worth noting…
The assignment risk on this trade is minimal, and even if I do get assigned, it works out favorably. Being short at 50 when I’m long at 45 would be a profitable outcome anyway.
Why Silver Has Room to Run — But Not in a Straight Line
We’re in blue sky territory now…
The secular case for silver remains strong — industrial demand, AI infrastructure buildout and its recent reclassification as a strategic metal rather than just an industrial commodity all support higher prices over time.
But I don’t expect this to be a straight shot higher. Markets rarely work that way, and silver has a history of volatile moves in both directions.
That’s exactly why I prefer this options approach. I want optionality instead of direct equity exposure at these elevated levels, and this debit spread gives me exactly that — upside participation with defined risk and a cost basis that makes sense.
If you’re thinking about silver here, consider whether you want to own shares at all-time highs or structure a trade that gives you breathing room through the inevitable chop.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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