AGI Covered Call 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 covered call on AGI?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
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 covered call 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 covered call structure on AGI specifically: AGI IV at 51.90% is mid-range versus its 1-year history, so the credit collected on a AGI covered call 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 covered call setup
The AGI covered call 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 $42.00 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) |
|---|---|---|---|
| Buy 100 shares | Stock | $40.39 | long |
| Sell 1 | Call | $42.00 | $1.98 |
AGI covered call risk and reward
- Net Premium / Debit
- -$3,841.50
- Max Profit (per contract)
- $358.50
- Max Loss (per contract)
- -$3,840.50
- Breakeven(s)
- $38.42
- Risk / Reward Ratio
- 0.093
Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
AGI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call 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% | -$3,840.50 |
| $8.94 | -77.9% | -$2,947.57 |
| $17.87 | -55.8% | -$2,054.63 |
| $26.80 | -33.7% | -$1,161.70 |
| $35.73 | -11.5% | -$268.76 |
| $44.66 | +10.6% | +$358.50 |
| $53.59 | +32.7% | +$358.50 |
| $62.52 | +54.8% | +$358.50 |
| $71.44 | +76.9% | +$358.50 |
| $80.37 | +99.0% | +$358.50 |
When traders use covered call on AGI
Covered calls on AGI are an income strategy run on existing AGI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
AGI thesis for this covered call
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 covered call collects premium on an existing long AGI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AGI will breach that level within the expiration window. Current AGI IV rank near 65.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call 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 covered call 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 covered call 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 covered call on AGI?
- A covered call on AGI is the covered call strategy applied to AGI (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. 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 covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the AGI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is $358.50 per contract and the computed maximum loss is -$3,840.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGI covered call?
- The breakeven for the AGI covered call priced on this page is roughly $38.42 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 covered call on AGI?
- Covered calls on AGI are an income strategy run on existing AGI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current AGI implied volatility affect this covered call?
- 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.