A trade highlighted to us this morning. Feb Silver Implied Vol vs Feb Gold Implied might be useful if you have a view between these 2 products. Gold Vol back at sub 55% of Silver Vol.
Scattering to the products over 3 years shows you the tight correlation, the yellow dot here shows Silvers elevated current Vol relative to Gold.
To track the trade idea, we used the 2 straddles. Selling weighted Silver Vol should provide a good credit of any switch ideas, given its currently high levels vs Gold Vol.
