ASM Cash-Secured Put Strategy

ASM (Avino Silver & Gold Mines Ltd.), in the Basic Materials sector, (Other Precious Metals industry), listed on AMEX.

Avino Silver & Gold Mines Ltd., together with its subsidiaries, engages in the acquisition, exploration, and advancement of mineral properties in Canada. It primarily explores for silver, gold, and copper deposits. The company owns interests in 42 mineral claims and four leased mineral claims, including Avino mine area property comprising four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares; Gomez Palacio property consists of nine exploration concessions covering 2,549 hectares; Santiago Papasquiaro property comprises four exploration concessions covering 2,552.6 hectares and one exploitation concession covering 602.9 hectares; and Unification La Platosa properties, which include three leased concessions located in the state of Durango, Mexico. It also owns 100% interests in the Minto and Olympic-Kelvin properties located in British Columbia, Canada; and 14 quartz leases in Eagle property located in the Mayo Mining Division of Yukon, Canada. The company was incorporated in 1968 and is headquartered in Vancouver, Canada.

ASM (Avino Silver & Gold Mines Ltd.) trades in the Basic Materials sector, specifically Other Precious Metals, with a market capitalization of approximately $1.32B, a trailing P/E of 45.34, a beta of 2.86 versus the broader market, a 52-week range of 2.37-11.99, average daily share volume of 5.1M, a public-listing history dating back to 2005, approximately 350 full-time employees. These structural characteristics shape how ASM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.86 indicates ASM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 45.34 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.

What is a cash-secured put on ASM?

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 ASM snapshot

As of May 15, 2026, spot at $7.11, ATM IV 82.70%, expected move 23.71%. The cash-secured put on ASM 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 ASM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ASM is inferred from ATM IV at 82.70% alone, with a market-implied 1-standard-deviation move of approximately 23.71% (roughly $1.69 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 ASM expiries trade a higher absolute premium for lower per-day decay. Position sizing on ASM should anchor to the underlying notional of $7.11 per share and to the trader's directional view on ASM stock.

ASM cash-secured put setup

The ASM 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 ASM near $7.11, the first option leg uses a $6.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ASM 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 ASM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$6.75	N/A

ASM cash-secured put risk and reward

Net Premium / Debit: N/A
Max Profit (per contract): Unbounded
Max Loss (per contract): Unbounded
Breakeven(s): None on modeled curve
Risk / Reward Ratio: N/A

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

ASM cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ASM. 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.

When traders use cash-secured put on ASM

Cash-secured puts on ASM earn premium while a trader waits to acquire ASM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ASM.

ASM thesis for this cash-secured put

The market-implied 1-standard-deviation range for ASM extends from approximately $5.42 on the downside to $8.80 on the upside. A ASM cash-secured put lets a trader earn premium while waiting to acquire ASM 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. As a Basic Materials name, ASM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ASM-specific events.

ASM 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. ASM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ASM alongside the broader basket even when ASM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ASM carry tail risk when realized volatility exceeds the implied move; review historical ASM earnings reactions and macro stress periods before sizing. Always rebuild the position from current ASM chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on ASM?: A cash-secured put on ASM is the cash-secured put strategy applied to ASM (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 ASM stock trading near $7.11, the strikes shown on this page are snapped to the nearest listed ASM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ASM 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 ASM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 82.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ASM cash-secured put?: The breakeven for the ASM cash-secured put priced on this page is no defined breakeven on the modeled curve 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 ASM market-implied 1-standard-deviation expected move is approximately 23.71%; 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 ASM?: Cash-secured puts on ASM earn premium while a trader waits to acquire ASM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ASM.
How does current ASM implied volatility affect this cash-secured put?: Current ASM ATM IV is 82.70%; IV rank context is unavailable in the current snapshot.