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Updating our Gold & Silver October Call Spread Trades Following Sharp Rally

Published on September 29, 2025

Jeff Jacobson

As the Gold and Silver trades continue their strong upward trajectory, we are being asked by clients the best way to play both now. Both Colin Fenton and John Roque remain bullish on both and see further gains from here. That being said, gold (GLD) is up ~ 15% since the middle of August, while silver (SLV) is up a whopping 28.5% since the start of August and it wouldn’t surprise us to see some consolidation after such a strong move.

Earlier this month I suggested owning October call spreads in both GLD and SLV as a way to play for continued gains in both (here). Given the strength of the move over just that time, both of those October call spreads are now well in the money (and up considerably). I would argue now that call spreads in both are even MORE attractive here as either a way to “jump” into the trades at these higher levels (if you have missed out), and/or to consider swapping some long stock/futures exposure into the defined-risk call spread trade. Yes, implied volatility has risen for both gold and silver calls, but given the sharp move higher and potential for even more gains (or pullbacks) I still think owning upside call spreads in both makes a whole lot of sense.

Gold (GLD) now up more than 15% since the middle of August

A screen shot of a graph

AI-generated content may be incorrect.

Silver (SLV) with an even bigger gain of ~ 28.5% since early August

At this point I would now consider November call spreads over October. This would extend the duration on the trade, improve the overall theta, and would also keep the ideas in play should we see a small pullback (not surprising given the move). Here are the trades for both GLD and SLV I would consider now:

Gold :

Buy GLD Nov 21^st 360/395 call spread for ~ $6 (GLD 351.60 price ref)

Buying the November upside call spread that starts just over 2% higher
Defined-risk way to either add/stay in the gold trade
Could also consider swapping long stock/future exposure into the defined-risk upside structure
Trade offers a nearly 5x to 1 max payoff and has nearly 2 months duration to work
Trade captures nice call skew (buying 17.9 vol/selling 20.6 vol)
Please contract me or the 22V sales team for updated pricing and execution capabilities

Silver:
Buy SLV Nov 21^st 44/52 call spread for ~ $1.15 (SLV 42.25 price ref)

Buying the November upside call spread following huge rally since the start of August
Call spread starts just over 4% higher
Could also consider swapping long stock/future exposure into the defined-risk upside structure
Trade offers a nearly 6x to 1 max payoff and has nearly 2 months duration to work
Trade captures nice call skew (buying 31.7 vol/selling 37.4 vol)
Please contract me or the 22V sales team for updated pricing and execution capabilities

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