AGI Cash-Secured Put Strategy
AGI (Alamos Gold Inc.), in the Basic Materials sector, (Gold industry), listed on NYSE.
Alamos gold holding oorperatief u.a. operates as a subsidiary of Alamos Gold Inc.
AGI (Alamos Gold Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $18.33B, a trailing P/E of 17.24, a beta of 1.29 versus the broader market, a 52-week range of 23.79-55.41, average daily share volume of 3.7M, a public-listing history dating back to 2003, approximately 2K full-time employees. These structural characteristics shape how AGI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places AGI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AGI 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 AGI?
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 AGI snapshot
As of May 15, 2026, spot at $40.39, ATM IV 51.90%, IV rank 65.13%, expected move 14.88%. The cash-secured put on AGI 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 34-day expiry.
Why this cash-secured put structure on AGI specifically: AGI IV at 51.90% is mid-range versus its 1-year history, so the credit collected on a AGI cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.88% (roughly $6.01 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AGI expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGI should anchor to the underlying notional of $40.39 per share and to the trader's directional view on AGI stock.
AGI cash-secured put setup
The AGI 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 AGI near $40.39, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGI chain at a 34-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 AGI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $38.00 | $1.43 |
AGI cash-secured put risk and reward
- Net Premium / Debit
- +$142.50
- Max Profit (per contract)
- $142.50
- Max Loss (per contract)
- -$3,656.50
- Breakeven(s)
- $36.58
- Risk / Reward Ratio
- 0.039
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AGI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AGI. 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% | -$3,656.50 |
| $8.94 | -77.9% | -$2,763.57 |
| $17.87 | -55.8% | -$1,870.63 |
| $26.80 | -33.7% | -$977.70 |
| $35.73 | -11.5% | -$84.76 |
| $44.66 | +10.6% | +$142.50 |
| $53.59 | +32.7% | +$142.50 |
| $62.52 | +54.8% | +$142.50 |
| $71.44 | +76.9% | +$142.50 |
| $80.37 | +99.0% | +$142.50 |
When traders use cash-secured put on AGI
Cash-secured puts on AGI earn premium while a trader waits to acquire AGI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AGI.
AGI thesis for this cash-secured put
The market-implied 1-standard-deviation range for AGI extends from approximately $34.38 on the downside to $46.40 on the upside. A AGI cash-secured put lets a trader earn premium while waiting to acquire AGI 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 AGI IV rank near 65.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AGI should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, AGI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGI-specific events.
AGI 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. AGI positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGI alongside the broader basket even when AGI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AGI carry tail risk when realized volatility exceeds the implied move; review historical AGI earnings reactions and macro stress periods before sizing. Always rebuild the position from current AGI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AGI?
- A cash-secured put on AGI is the cash-secured put strategy applied to AGI (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 AGI stock trading near $40.39, the strikes shown on this page are snapped to the nearest listed AGI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGI 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 AGI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $142.50 per contract and the computed maximum loss is -$3,656.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGI cash-secured put?
- The breakeven for the AGI cash-secured put priced on this page is roughly $36.58 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 AGI market-implied 1-standard-deviation expected move is approximately 14.88%; 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 AGI?
- Cash-secured puts on AGI earn premium while a trader waits to acquire AGI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AGI.
- How does current AGI implied volatility affect this cash-secured put?
- AGI ATM IV is at 51.90% with IV rank near 65.13%, 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.