The SqueezeSilver is no longer just threatening a breakout. The move is now accelerating, with price up almost 5%, positioning still light and the options setup continuing to work. The more interesting question is what is driving the renewed appetite for silver. As speculative excess comes out of the AI complex, some of that risk appetite may be finding a new home in one of the market's oldest momentum trades.Surging silverSilver continues its breakout move, adding almost 5% as of writing. The negative trend is gone, and silver is trading above the 50-day moving average for the first time in a while. The first bigger resistance comes in around $72, right where the 200-day moving average sits.Source: LSEG WorkspaceSpecs missed itSilver speculators got out just in time for the latest squeeze higher.Source: LSEG WorkspaceSilver volatilitySilver volatility, VXSLV, isn't dirt cheap, but it still offers attractive setups for playing further upside optionality. The Sep SLV call spread we mentioned earlier this week is already kicking in, so make sure to roll into higher strikes should the squeeze continue. Vols are still on your side.Source: LSEG WorkspaceSpeculative excessThere is very little fundamentally in common between silver and the KOSPI, but it is worth noting that silver's implosion basically ended just as the KOSPI topped out. Silver started catching bids just in time for the KOSPI washout.KOSPI remains one of the more sensitive AI signals in our view. Could some of the speculative excess leaving AI-related plays now be finding its way into old speculative favorites such as silver?Source: LSEG Workspace
