Silver's put-call skew hits its most bearish level since early July
As seen on the 24/7 Wall St. homepage on October 24, 2026.
Downside hedges are now the priciest since early July, and crowded bearish positioning is exactly the setup that fuels violent squeezes in silver and the miners levered to it.
The short silver trade is becoming crowded. Silver's 3-month silver put-call skew is up to -3 points, its highest level since early July. This metric measures the relative cost of put options to call options and is up +10 points over the last 4 weeks, signaling growing demand https://t.co/kSjMpq3DZZ
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Silver's 3-month put-call skew has moved to -3 points, a level not seen since early July, as traders pay up for downside protection rather than upside exposure.
Put-call skew measures the relative cost of put options versus call options, and a sharply negative reading means the options market is pricing puts at a premium as bearish conviction builds fast.
Crowded short trades carry their own reversal risk: with much of the market already positioned lower, even a modest catalyst the other way can trigger a rapid unwind as shorts scramble to cover.
The Kobeissi Letter flags that downside hedges are the priciest since early July, the kind of crowded bearish positioning that has historically fueled sharp squeezes in silver and in mining stocks. That raises the cost and risk of adding to a short here.