Silver's Options Sizzle: Are Traders Betting on a Breakout?

Globe and Mail

a day ago

A notable wave of trading activity swept through several silver-linked assets in early June. Investors saw a significant jump in call option volumes for multiple silver-related equities. Call options give the holder the right, not the requirement, to buy an asset, such as a stock or ETF share, at a pre-set price by a specific date. When call volume spikes, it often signals that some traders believe the asset's price is poised to rise.
This unusual call option volume and increased investor interest in multiple stocks and ETFs at the same time warrant a closer look to see what's stirring in the silver sector.
Unpacking the Action: A Look at Specific Silver Plays
The heightened call option volume in early June varied across multiple silver-related securities, each telling a slightly different story. Separately, they tell four stories of bullish catalysts and heightened investor sentiment, but when combined, they start to reveal the bigger picture of a sector accumulating interest and investment.
iShares Silver Trust: A Price Play on Silver Bullion?
[content-module:CompanyOverview|NYSE:AG]
The iShares Silver Trust (NYSEARCA: SLV), an ETF that aims to track the price of silver bullion, saw 599,279 call option contracts traded. This volume was 57.8% above its usual average.
The high call volume may suggest that some traders expect silver prices to rebound soon or are preparing for further price fluctuations.
Because SLV tracks physical silver, this option's activity directly reflects views on the metal itself, likely influenced by broader economic news or general market coverage.
First Majestic: Mining News Ignites Options Interest?
[content-module:CompanyOverview|NYSE:AG]
First Majestic Silver Corp. (NYSE: AG), a company focused mainly on silver production, experienced a call option volume of 39,607 contracts, an 80.9% increase from its average. First Majestic's stock price has also climbed around 18% to $7.28 during the first week of June, with a high trading volume.
This mix of soaring call options, a rising stock price, and heavy trading often points to strong positive sentiment. Recent good news from the company has also likely played a role.
For instance, on May 28, 2025, First Majestic announced a significant gold-silver discovery at its Santa Elena property. This, along with strong financial results from the first quarter of 2025, could lead traders to expect more gains from the stock.
Pan American Silver: Big Deal Draws Options Traders?
[content-module:CompanyOverview|NYSEARCA:SILJ]
Pan American Silver Corp. (NYSE: PAAS), a large, diversified silver producer, recorded 9,098 call option contracts traded, up 25.7% from its average.
The company's stock price also rose, gaining nearly 10% in early June. This increased call activity, alongside positive news indicators, suggests investors are reacting well to recent company moves.
A key factor is likely Pan American's May 11, 2025, announcement of a deal to acquire MAG Silver Corp. for $2.1 billion. This strategic acquisition is expected to significantly boost Pan American's silver output and potential future earnings, which could, in turn, lift its stock price and attract optimistic options bets.
Junior Miners: High Hopes for Smaller Players?
[content-module:CompanyOverview|NYSEARCA:SILJ]
The Amplify Junior Silver Miners ETF (NYSEARCA: SILJ), which holds smaller silver mining and exploration companies, saw its call option volume hit 14,925 contracts. This was a striking 97.7% leap above its average, and it was also the most significant percentage increase among these assets. SILJ's price also increased by around 10% in early June.
This dramatic percentage jump in calls for SILJ points to strong speculative interest in this part of the silver market. Junior miners often have stock prices that move more sharply with silver prices.
The high option activity here suggests that some traders may be betting on substantial returns from these smaller firms if silver prices continue to climb or if positive news persists for the sector.
Beyond Options: What This Means for the Silver Market
When call option volume rises sharply across different types of silver assets, it can signal a broader increase in investor focus on the entire silver sector. Some traders may be positioning for potential price gains.
Silver's appeal comes from several areas. Demand from industries utilizing silver in green technologies, such as solar panels, electronics and the automotive sector, remains strong.
Silver is also a well-known precious metal. It is often regarded as a valuable investment that retains its value, especially during economic uncertainty or rising inflation. These core factors continue to support interest in the metal.
What Spiking Call Volumes Say About Silver's Next Move
The notable surge in call option activity across our four assets in early June clearly shows heightened investor focus on the silver sector. This flurry of bullish bets, reflected in the increased demand for call options, suggests that a market segment is positioning for potential upward price movements in silver bullion and mining equities.
Whether driven by specific company news or broader shifts in sentiment towards precious metals, the data points to a renewed speculative interest. The significant percentage increase in call volume underscores a willingness among some traders to embrace higher-risk, potentially higher-reward scenarios within the silver space.
Ultimately, this concentrated options activity serves as a strong indicator that silver and its related securities captured significant market attention. At the same time, the direct motivations behind each trade can vary, the collective signal points towards a period of dynamic interest and re-evaluation for the silver complex.
How these expectations play out will depend on ongoing market fundamentals, company performance, and the broader economic landscape, ensuring that the silver narrative will remain one to watch.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.