December 21, 2012 at 13:48 PM EST
Silver Worst Performer in December, Traders Perplexed
The silver market is much smaller than the gold market, so silver is used as a beta play on gold. This makes silver options relatively more expensive than gold options, so there is more premium to be collected by selling options. But of course, with more potential reward comes more risk, and there is a reason for these higher premiums - silver has been known to move over 3 percent on a daily basis.
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