AG Bull Call Spread Strategy
AG (First Majestic Silver Corp.), in the Basic Materials sector, (Silver industry), listed on NYSE.
First Majestic Silver Corp. is a North American mining company dedicated to the exploration, acquisition, development, and operation of mineral properties, primarily concentrating on silver and gold output. The company fully owns and operates a portfolio of significant mining assets. In Mexico, these include the San Dimas Silver/Gold Mine (71,868 hectares in Durango and Sinaloa), the Santa Elena Silver/Gold Mine (102,244 hectares in Sonora), the La Encantada Silver Mine (4,076 hectares in Coahuila, complemented by 1,343 hectares of surface rights), the La Parrilla Silver Mine (69,478 hectares in Durango), the Del Toro Silver Mine (comprising 3,815 hectares of mining concessions and 219 hectares of surface rights in Zacatecas), the San Martin Silver Mine (12,795 hectares across 33 mining concessions in Jalisco), and the La Guitarra Silver Mine (39,714 hectares). Beyond Mexico, its holdings extend to the Jerritt Canyon gold mine, spanning approximately 30,821 hectares in Elko County, Nevada. Additionally, First Majestic maintains an interest in the Springpole project, a gold and silver prospect encompassing around 41,913 hectares in Ontario, Canada. Established in 1979, the firm initially operated as First Majestic Resource Corp. before adopting its current name, First Majestic Silver Corp., in November 2006.
AG (First Majestic Silver Corp.) trades in the Basic Materials sector, specifically Silver, with a market capitalization of approximately $8.34B, a trailing P/E of 28.29, a beta of 2.07 versus the broader market, a 52-week range of 7.74-32.04, average daily share volume of 13.6M, a public-listing history dating back to 2006, approximately 4K full-time employees. These structural characteristics shape how AG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.07 indicates AG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on AG?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
Current AG snapshot
As of June 30, 2026, spot at $17.01, ATM IV 68.51%, IV rank 27.75%, expected move 19.64%. The bull call spread on AG 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 31-day expiry.
Why this bull call spread structure on AG specifically: AG IV at 68.51% is on the cheap side of its 1-year range, which favors premium-buying structures like a AG bull call spread, with a market-implied 1-standard-deviation move of approximately 19.64% (roughly $3.34 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AG should anchor to the underlying notional of $17.01 per share and to the trader's directional view on AG stock.
AG bull call spread setup
The AG bull call spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AG near $17.01, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AG chain at a 31-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 AG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.00 | $1.43 |
| Sell 1 | Call | $18.00 | $1.03 |
AG bull call spread risk and reward
- Net Premium / Debit
- -$40.00
- Max Profit (per contract)
- $60.00
- Max Loss (per contract)
- -$40.00
- Breakeven(s)
- $17.40
- Risk / Reward Ratio
- 1.500
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit.
AG bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on AG. 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 | -99.9% | -$40.00 |
| $3.77 | -77.8% | -$40.00 |
| $7.53 | -55.7% | -$40.00 |
| $11.29 | -33.6% | -$40.00 |
| $15.05 | -11.5% | -$40.00 |
| $18.81 | +10.6% | +$60.00 |
| $22.57 | +32.7% | +$60.00 |
| $26.33 | +54.8% | +$60.00 |
| $30.09 | +76.9% | +$60.00 |
| $33.85 | +99.0% | +$60.00 |
When traders use bull call spread on AG
Bull call spreads on AG reduce the cost of a bullish AG stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
AG thesis for this bull call spread
The market-implied 1-standard-deviation range for AG extends from approximately $13.67 on the downside to $20.35 on the upside. A AG bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on AG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AG IV rank near 27.75% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AG at 68.51%. As a Basic Materials name, AG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AG-specific events.
AG bull call spread positions are structurally moderately 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. AG positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AG alongside the broader basket even when AG-specific fundamentals are unchanged. Long-premium structures like a bull call spread on AG are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current AG chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on AG?
- A bull call spread on AG is the bull call spread strategy applied to AG (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With AG stock trading near $17.01, the strikes shown on this page are snapped to the nearest listed AG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AG bull call spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit. For the AG bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 68.51%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AG bull call spread?
- The breakeven for the AG bull call spread priced on this page is roughly $17.40 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 AG market-implied 1-standard-deviation expected move is approximately 19.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on AG?
- Bull call spreads on AG reduce the cost of a bullish AG stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current AG implied volatility affect this bull call spread?
- AG ATM IV is at 68.51% with IV rank near 27.75%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.