AGM Cash-Secured Put Strategy
AGM (Federal Agricultural Mortgage), in the Financial Services sector, (Financial - Credit Services industry), listed on NYSE.
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through seven segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. The Farm & Ranch segment includes the USDA Securities portfolio, Farm & Ranch loans, and AgVantage securities secured by Farm & Ranch loans. The Corporate AgFinance segment includes loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production. The Power & Utilities segment includes loans to rural electric generation and transmission cooperatives and distribution cooperatives, as well as AgVantage securities secured by those types of loans. The Broadband Infrastructure segment includes loans to rural fiber, cable/broadband, tower, wireless, local exchange carrier, and data center projects.
AGM (Federal Agricultural Mortgage) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $2.12B, a trailing P/E of 11.61, a beta of 1.03 versus the broader market, a 52-week range of 136.57-210.64, average daily share volume of 119K, a public-listing history dating back to 1994, approximately 211 full-time employees. These structural characteristics shape how AGM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places AGM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.61 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AGM 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 AGM?
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 AGM snapshot
As of June 30, 2026, spot at $201.48, ATM IV 27.30%, IV rank 4.46%, expected move 7.83%. The cash-secured put on AGM 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 17-day expiry.
Why this cash-secured put structure on AGM specifically: AGM IV at 27.30% is on the cheap side of its 1-year range, which means a premium-selling AGM cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.83% (roughly $15.77 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AGM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGM should anchor to the underlying notional of $201.48 per share and to the trader's directional view on AGM stock.
AGM cash-secured put setup
The AGM 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 AGM near $201.48, the first option leg uses a $190.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGM chain at a 17-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 AGM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $190.00 | $1.83 |
AGM cash-secured put risk and reward
- Net Premium / Debit
- +$182.50
- Max Profit (per contract)
- $182.50
- Max Loss (per contract)
- -$18,816.50
- Breakeven(s)
- $188.18
- Risk / Reward Ratio
- 0.010
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AGM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AGM. 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% | -$18,816.50 |
| $44.56 | -77.9% | -$14,361.78 |
| $89.10 | -55.8% | -$9,907.05 |
| $133.65 | -33.7% | -$5,452.33 |
| $178.20 | -11.6% | -$997.61 |
| $222.75 | +10.6% | +$182.50 |
| $267.29 | +32.7% | +$182.50 |
| $311.84 | +54.8% | +$182.50 |
| $356.39 | +76.9% | +$182.50 |
| $400.94 | +99.0% | +$182.50 |
When traders use cash-secured put on AGM
Cash-secured puts on AGM earn premium while a trader waits to acquire AGM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AGM.
AGM thesis for this cash-secured put
The market-implied 1-standard-deviation range for AGM extends from approximately $185.71 on the downside to $217.25 on the upside. A AGM cash-secured put lets a trader earn premium while waiting to acquire AGM 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 AGM IV rank near 4.46% 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 AGM at 27.30%. As a Financial Services name, AGM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGM-specific events.
AGM 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. AGM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGM alongside the broader basket even when AGM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AGM carry tail risk when realized volatility exceeds the implied move; review historical AGM earnings reactions and macro stress periods before sizing. Always rebuild the position from current AGM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AGM?
- A cash-secured put on AGM is the cash-secured put strategy applied to AGM (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 AGM stock trading near $201.48, the strikes shown on this page are snapped to the nearest listed AGM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGM 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 AGM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 27.30%), the computed maximum profit is $182.50 per contract and the computed maximum loss is -$18,816.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGM cash-secured put?
- The breakeven for the AGM cash-secured put priced on this page is roughly $188.18 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 AGM market-implied 1-standard-deviation expected move is approximately 7.83%; 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 AGM?
- Cash-secured puts on AGM earn premium while a trader waits to acquire AGM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AGM.
- How does current AGM implied volatility affect this cash-secured put?
- AGM ATM IV is at 27.30% with IV rank near 4.46%, 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.