AG Stock Options: Trading Aggressive Opportunities for the March 13th Expiration

Traders seeking income-generating strategies got a fresh opportunity when new options contracts for First Majestic Silver Corp (AG) launched for the March 13th expiration date. At Stock Options Channel, the YieldBoost platform screened the entire AG options chain and surfaced two particularly compelling strategies worth considering. These opportunities reflect the aggressive appetite some investors maintain for extracting premium income from their holdings or taking tactical positions in this white metal miner.

Understanding AG’s Put Strategy – The 17% Discount Play

For investors already considering an entry point into AG shares, the put contract deserves careful attention. The $20.50 strike is currently bid at 55 cents, which opens an interesting avenue for aggressive buyers. Here’s how it works in practice: if you sell-to-open this AG put contract, you’re effectively committing to purchase shares at $20.50 per share while immediately collecting that 55-cent premium. This reduces your effective cost basis to $19.95 per share—substantially more attractive than today’s $24.62 market price.

What makes this particularly noteworthy is the aggressive discount embedded in the structure. The $20.50 strike represents approximately 17% below the current trading price, sitting significantly out-of-the-money. Stock Options Channel’s analytical models—incorporating greeks and implied greek calculations—estimate a 79% probability that this AG put expires worthless. If that outcome materializes, your 55-cent premium translates to an impressive 2.68% return on your cash commitment, or 22.80% when annualized. This aggressive yield enhancement is what Stock Options Channel calls the YieldBoost.

When examining AG’s trailing twelve-month price history, the $20.50 strike appears well-positioned relative to recent trading ranges, providing both a meaningful discount and realistic probability of success.

Aggressive Call Coverage – The 12% Premium Approach

Flipping to the call side, AG’s aggressive investors can explore covered call tactics. The $27.50 call is currently priced at $1.76 bid. For someone already owning AG shares at the $24.62 price level, selling-to-open this call as a covered call creates an aggressive income supplement. You’d commit to sell your shares at $27.50 while pocketing the $1.76 premium.

The math on this AG strategy is compelling: a combined 18.85% total return if the call assignment occurs at March 13th expiration (before commissions and dividends). The $27.50 strike sits roughly 12% above the current price point—out-of-the-money territory that appears neither too conservative nor overly aggressive. Stock Options Channel estimates a 46% probability the AG covered call expires worthless, allowing you to retain both your shares and the premium collected.

Trailing twelve-month price patterns for AG suggest this $27.50 strike represents a reasonable target, particularly if the company’s fundamentals and silver market conditions remain supportive.

Understanding Risk-Adjusted Returns and Volatility

The premium income picture becomes clearer when considering the underlying volatility environment. AG’s put contract reflects implied volatility of 133%, while the call shows 108%. Compare this against Stock Options Channel’s calculation of actual trailing twelve-month volatility at 67%—based on 251 trading days of closing data plus today’s $24.62 reference point.

This volatility divergence matters: elevated implied volatility expands premium-selling opportunities, which is precisely why these AG options strategies may appeal to aggressive income investors. However, it also signals market uncertainty that traders should acknowledge.

Framing Your AG Strategy Choice

Choosing between the put-selling approach and covered call strategy depends on your specific situation. The aggressive put seller wants AG exposure but seeks a lower entry price—accepting the commitment risk in exchange for premium income and a 79% probability of keeping their cash uninvested. The aggressive call seller already owns AG and prefers to augment returns through covered call income rather than chase unlimited upside beyond $27.50.

Stock Options Channel continues tracking these AG option probabilities and will update their analysis charts on the platform. For investors interested in exploring additional put and call opportunities beyond AG, visit StockOptionsChannel.com for their latest research and YieldBoost recommendations across the broader market, including top performers within the S&P 500.

All trading involves risk. Options strategies require careful analysis of your personal circumstances, risk tolerance, and investment objectives. The perspectives expressed here reflect analytical frameworks rather than personalized investment advice, and do not necessarily represent those of Nasdaq, Inc.