Silver Price Forecast: XAG/USD risk reversal eases after the biggest monthly jump since April

One-month risk reversal (RR), a measure of the spread between call and put prices, of silver (XAG/USD) jumped the most in six months during October, with the statistical count of +1.175 per the latest data from Reuters.

A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. 

That being said, the daily difference between them eased to -0.050 figure at the end of Monday’s North American trading session.

The option market moves could well be seen on the XAG/USD price chart as the quote snapped a four-month downtrend in October. The metal’s recent moves, however, remain sluggish around $24.00 amid cautious sentiment ahead of the key central bank events.

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