AEM Cash-Secured Put Strategy
AEM (Agnico Eagle Mines Limited), in the Basic Materials sector, (Gold industry), listed on NYSE.
Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. It operates through Northern Business and Southern Business segments. The company primarily produces and sells gold deposits, as well as explores for silver, zinc, and copper deposits. Its flagship property is the LaRonde mine located in the Abitibi region of northwestern Quebec, Canada. As of December 31, 2021, the company's LaRonde mine had proven and probable mineral reserves of approximately 3.0 million ounces of gold. It is also involved in exploration activities in Europe, Latin America, and the United States.
AEM (Agnico Eagle Mines Limited) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $98.18B, a trailing P/E of 18.39, a beta of 0.57 versus the broader market, a 52-week range of 103.97-255.24, average daily share volume of 2.6M, a public-listing history dating back to 1972, approximately 10K full-time employees. These structural characteristics shape how AEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.57 indicates AEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on AEM?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current AEM snapshot
As of May 15, 2026, spot at $180.59, ATM IV 43.72%, IV rank 50.92%, expected move 12.54%. The cash-secured put on AEM below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this cash-secured put structure on AEM specifically: AEM IV at 43.72% is mid-range versus its 1-year history, so the credit collected on a AEM cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.54% (roughly $22.64 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEM should anchor to the underlying notional of $180.59 per share and to the trader's directional view on AEM stock.
AEM cash-secured put setup
The AEM cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AEM near $180.59, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEM chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $170.00 | $4.15 |
AEM cash-secured put risk and reward
- Net Premium / Debit
- +$415.00
- Max Profit (per contract)
- $415.00
- Max Loss (per contract)
- -$16,584.00
- Breakeven(s)
- $165.85
- Risk / Reward Ratio
- 0.025
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AEM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AEM. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$16,584.00 |
| $39.94 | -77.9% | -$12,591.17 |
| $79.87 | -55.8% | -$8,598.33 |
| $119.80 | -33.7% | -$4,605.50 |
| $159.72 | -11.6% | -$612.66 |
| $199.65 | +10.6% | +$415.00 |
| $239.58 | +32.7% | +$415.00 |
| $279.51 | +54.8% | +$415.00 |
| $319.44 | +76.9% | +$415.00 |
| $359.37 | +99.0% | +$415.00 |
When traders use cash-secured put on AEM
Cash-secured puts on AEM earn premium while a trader waits to acquire AEM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AEM.
AEM thesis for this cash-secured put
The market-implied 1-standard-deviation range for AEM extends from approximately $157.95 on the downside to $203.23 on the upside. A AEM cash-secured put lets a trader earn premium while waiting to acquire AEM at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current AEM IV rank near 50.92% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AEM should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, AEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEM-specific events.
AEM cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AEM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AEM alongside the broader basket even when AEM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AEM carry tail risk when realized volatility exceeds the implied move; review historical AEM earnings reactions and macro stress periods before sizing. Always rebuild the position from current AEM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AEM?
- A cash-secured put on AEM is the cash-secured put strategy applied to AEM (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With AEM stock trading near $180.59, the strikes shown on this page are snapped to the nearest listed AEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AEM cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the AEM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 43.72%), the computed maximum profit is $415.00 per contract and the computed maximum loss is -$16,584.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AEM cash-secured put?
- The breakeven for the AEM cash-secured put priced on this page is roughly $165.85 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AEM market-implied 1-standard-deviation expected move is approximately 12.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on AEM?
- Cash-secured puts on AEM earn premium while a trader waits to acquire AEM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AEM.
- How does current AEM implied volatility affect this cash-secured put?
- AEM ATM IV is at 43.72% with IV rank near 50.92%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.