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Options Action: Silver ETF

With silver prices at its highest level in 30 years, it may be time to take profits in some winning metals plays. But if you don't want to miss out on the possibility of further upside, what's the play?

Try options, said Mike Khouw of Cantor Fitzgerald. In doing so, Khouw said investors can collar (protect to the downside while still preserving some upside) and he used the Silver exchange-traded fund as an example:

***MIKE’S SLV TRADE***
Buy the Dec. 23 puts at 20 cents
Sell the Dec. 34 calls at 20 cents
Net credit of .03

To learn more about this trade, watch the video.

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Trader disclosure: On November 8, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (BAC), (DD), (F), (GDXJ), (LVS) and (YHOO). Terranova owns (APA), (AAPL), (ARUN), (AXP), (C), (DIS), (GOOG), (GS), (FCX), (HES), (IBM), (ISRG), (MCD), (NKE), (OIH), (ORCL), (OXY), (PCP), (PEP), (PFE), (POT), (UPL) and (VRTS). Joe Terranova also owns (FCX), (FFIV) and (SLB) puts. Guy Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC) and (MSFT).

For Brian Kelly:
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (JEF)
Accounts managed by Kanundrum Capital own (TD)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (CLF)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (JJG)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (PCL)
Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own (FCX)
Accounts managed by Kanundrum Capital own (JO)
Accounts managed by Kanundrum Capital own (EWH)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (MOT)
Accounts managed by Kanundrum Capital own (HBC)
Accounts managed by Kanundrum Capital own (SWC)
Accounts managed by Kanundrum Capital own Euro
Accounts Managed By Kanundrum Capital own (POT) Calls
Accounts managed by Kanundrum Capital are short Japanese Yen

For Joe Terranova:
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CMS)
Virtus Investment Partners own more than 1% of (CSC)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (FCFS)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SOA)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (WMB)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Guy Adami:
Adami’s wife works at Merck

STEPHEN WEISS
Weiss owns (DIS)
Weiss owns (FWLT)

RICH ILCYSZYN
***No Disclosures***

RON SHAH
***No Disclosures***

TIM BOYD
***No Disclosures***

MIKE KHOUW
Cantor Fitzgerald makes a market in (AAPL)
Cantor Fitzgerald makes a market in (AOL)
Cantor Fitzgerald makes a market in (BAC)
Cantor Fitzgerald makes a market in (BWA)
Cantor Fitzgerald makes a market in (C)
Cantor Fitzgerald makes a market in (CSCO)
Cantor Fitzgerald makes a market in (DISH)
Cantor Fitzgerald makes a market in (F)
Cantor Fitzgerald makes a market in (GOOG)
Cantor Fitzgerald makes a market in (HGSI)
Cantor Fitzgerald makes a market in (INFY)
Cantor Fitzgerald makes a market in (INTC)
Cantor Fitzgerald makes a market in (JDSU)
Cantor Fitzgerald makes a market in (JPM)
Cantor Fitzgerald makes a market in (LVS)
Cantor Fitzgerald makes a market in (MCD)
Cantor Fitzgerald makes a market in (MDRX)
Cantor Fitzgerald makes a market in (PCLN)
Cantor Fitzgerald makes a market in (RAX)
Cantor Fitzgerald makes a market in (YHOO)

CNBC.com with wires.

Symbol
Price
 
Change
%Change
SLV
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