AG Cash-Secured Put Strategy
AG (First Majestic Silver Corp.), in the Basic Materials sector, (Silver industry), listed on NYSE.
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. It holds 100% interests in the San Dimas Silver/Gold Mine covering an area of 71,868 hectares located in Durango and Sinaloa states; the Santa Elena Silver/Gold Mine covering an area of 102,244 hectares located in Sonora; Jerritt Canyon gold mine that covers an area of approximately of 30,821 hectares located in Elko County, Nevada; and the La Encantada Silver Mine covering an area of 4,076 hectares situated in Coahuila, as well as surface land ownership of 1,343 hectares. The company also holds 100% interests in the La Parrilla Silver Mine that covers an area of 69,478 hectares located in Durango; the Del Toro Silver Mine consisting of 3,815 hectares of mining concessions and 219 hectares of surface rights located in Zacatecas; the San Martin Silver Mine includes 33 mining concessions covering an area of 12,795 hectares located in Jalisco; and the La Guitarra Silver Mine that covers an area of 39,714 hectares located in Mexico. In addition, it holds interest in the Springpole project, a gold and silver project covering an area of approximately 41,913 hectares in Ontario, Canada. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.
AG (First Majestic Silver Corp.) trades in the Basic Materials sector, specifically Silver, with a market capitalization of approximately $11.84B, a trailing P/E of 40.16, a beta of 0.85 versus the broader market, a 52-week range of 5.49-32.04, average daily share volume of 18.6M, 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 0.85 places AG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 40.16 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. AG 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 AG?
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 AG snapshot
As of May 15, 2026, spot at $20.45, ATM IV 73.99%, IV rank 49.44%, expected move 21.21%. The cash-secured put 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 28-day expiry.
Why this cash-secured put structure on AG specifically: AG IV at 73.99% is mid-range versus its 1-year history, so the credit collected on a AG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 21.21% (roughly $4.34 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 AG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AG should anchor to the underlying notional of $20.45 per share and to the trader's directional view on AG stock.
AG cash-secured put setup
The AG 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 AG near $20.45, the first option leg uses a $19.50 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 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 AG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $19.50 | $1.22 |
AG cash-secured put risk and reward
- Net Premium / Debit
- +$122.00
- Max Profit (per contract)
- $122.00
- Max Loss (per contract)
- -$1,827.00
- Breakeven(s)
- $18.28
- Risk / Reward Ratio
- 0.067
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put 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 | -100.0% | -$1,827.00 |
| $4.53 | -77.8% | -$1,374.95 |
| $9.05 | -55.7% | -$922.90 |
| $13.57 | -33.6% | -$470.85 |
| $18.09 | -11.5% | -$18.80 |
| $22.61 | +10.6% | +$122.00 |
| $27.13 | +32.7% | +$122.00 |
| $31.65 | +54.8% | +$122.00 |
| $36.17 | +76.9% | +$122.00 |
| $40.69 | +99.0% | +$122.00 |
When traders use cash-secured put on AG
Cash-secured puts on AG earn premium while a trader waits to acquire AG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AG.
AG thesis for this cash-secured put
The market-implied 1-standard-deviation range for AG extends from approximately $16.11 on the downside to $24.79 on the upside. A AG cash-secured put lets a trader earn premium while waiting to acquire AG 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 AG IV rank near 49.44% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AG should anchor more to the directional view and the expected-move geometry. 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 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. 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. Short-premium structures like a cash-secured put on AG carry tail risk when realized volatility exceeds the implied move; review historical AG earnings reactions and macro stress periods before sizing. Always rebuild the position from current AG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AG?
- A cash-secured put on AG is the cash-secured put strategy applied to AG (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 AG stock trading near $20.45, 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 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 AG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 73.99%), the computed maximum profit is $122.00 per contract and the computed maximum loss is -$1,827.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AG cash-secured put?
- The breakeven for the AG cash-secured put priced on this page is roughly $18.28 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 21.21%; 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 AG?
- Cash-secured puts on AG earn premium while a trader waits to acquire AG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AG.
- How does current AG implied volatility affect this cash-secured put?
- AG ATM IV is at 73.99% with IV rank near 49.44%, 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.