AGI Straddle 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 straddle on AGI?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
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 straddle 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 straddle structure on AGI specifically: AGI IV at 51.90% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, 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 straddle setup
The AGI straddle 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 $40.00 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 1 | Call | $40.00 | $2.78 |
| Buy 1 | Put | $40.00 | $2.30 |
AGI straddle risk and reward
- Net Premium / Debit
- -$507.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$488.29
- Breakeven(s)
- $34.93, $45.08
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
AGI straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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% | +$3,491.50 |
| $8.94 | -77.9% | +$2,598.57 |
| $17.87 | -55.8% | +$1,705.63 |
| $26.80 | -33.7% | +$812.70 |
| $35.73 | -11.5% | -$80.24 |
| $44.66 | +10.6% | -$41.83 |
| $53.59 | +32.7% | +$851.11 |
| $62.52 | +54.8% | +$1,744.04 |
| $71.44 | +76.9% | +$2,636.98 |
| $80.37 | +99.0% | +$3,529.91 |
When traders use straddle on AGI
Straddles on AGI are pure-volatility plays that profit from large moves in either direction; traders typically buy AGI straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
AGI thesis for this straddle
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 long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current AGI IV rank near 65.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle 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 straddle positions are structurally neutral / high-volatility (long premium); 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. Always rebuild the position from current AGI chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on AGI?
- A straddle on AGI is the straddle strategy applied to AGI (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. 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 straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the AGI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 51.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$488.29 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGI straddle?
- The breakeven for the AGI straddle priced on this page is roughly $34.93 and $45.08 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 straddle on AGI?
- Straddles on AGI are pure-volatility plays that profit from large moves in either direction; traders typically buy AGI straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current AGI implied volatility affect this straddle?
- 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.