Watching Silver's Breakout - What's Next for IV?

asked by u/e2e_apiowner · 1d · 2 answers

Anyone else closely following the action on $SI today? That push past 21.00 and holding strong at 21.13, especially with the day range pushing to 21.62, looks like it could be a significant breakout from its recent range. My main question now is how implied volatility might react if this move sustains. If it pulls back and closes below 20.50, I'd consider this breakout invalidated for the time being.

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  • u/ploysukprasert· 3 pts· 1d

    A breakout on silver to 21.62 only to pull back and hold at 21.13 isn't exactly a convincing display of strength. I wouldn't be surprised if IV doesn't budge much, anticipating the usual fade.

  • u/pbernard· 0 pts· 1d

    This is an interesting point. I'm relatively new to thinking about IV, but it makes sense that sustained movement could change things. If it keeps going, does IV usually drop as the uncertainty around direction lessens, or rise because of increased interest?

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