NG Cash-Secured Put Strategy
NG (NovaGold Resources Inc.), in the Basic Materials sector, (Gold industry), listed on AMEX.
NovaGold Resources Inc. explores for and develops gold mineral properties in the United States. Its principal asset is the Donlin Gold project consisting of 493 mining claims covering an area of approximately 29,008 hectares located in the Kuskokwim region of southwestern Alaska. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was incorporated in 1984 and is based in Vancouver, Canada.
NG (NovaGold Resources Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $3.98B, a beta of 2.10 versus the broader market, a 52-week range of 3.4-14.4, average daily share volume of 3.7M, a public-listing history dating back to 2003, approximately 14 full-time employees. These structural characteristics shape how NG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.10 indicates NG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on NG?
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 NG snapshot
As of May 15, 2026, spot at $8.16, ATM IV 67.40%, IV rank 37.56%, expected move 19.32%. The cash-secured put on NG 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 NG specifically: NG IV at 67.40% is mid-range versus its 1-year history, so the credit collected on a NG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 19.32% (roughly $1.58 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 NG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NG should anchor to the underlying notional of $8.16 per share and to the trader's directional view on NG stock.
NG cash-secured put setup
The NG 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 NG near $8.16, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NG 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 NG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $8.00 | $0.58 |
NG cash-secured put risk and reward
- Net Premium / Debit
- +$57.50
- Max Profit (per contract)
- $57.50
- Max Loss (per contract)
- -$741.50
- Breakeven(s)
- $7.43
- Risk / Reward Ratio
- 0.078
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NG. 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 | -99.9% | -$741.50 |
| $1.81 | -77.8% | -$561.19 |
| $3.62 | -55.7% | -$380.88 |
| $5.42 | -33.6% | -$200.57 |
| $7.22 | -11.5% | -$20.25 |
| $9.03 | +10.6% | +$57.50 |
| $10.83 | +32.7% | +$57.50 |
| $12.63 | +54.8% | +$57.50 |
| $14.43 | +76.9% | +$57.50 |
| $16.24 | +99.0% | +$57.50 |
When traders use cash-secured put on NG
Cash-secured puts on NG earn premium while a trader waits to acquire NG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NG.
NG thesis for this cash-secured put
The market-implied 1-standard-deviation range for NG extends from approximately $6.58 on the downside to $9.74 on the upside. A NG cash-secured put lets a trader earn premium while waiting to acquire NG 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 NG IV rank near 37.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on NG should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, NG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NG-specific events.
NG 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. NG positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NG alongside the broader basket even when NG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NG carry tail risk when realized volatility exceeds the implied move; review historical NG earnings reactions and macro stress periods before sizing. Always rebuild the position from current NG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NG?
- A cash-secured put on NG is the cash-secured put strategy applied to NG (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 NG stock trading near $8.16, the strikes shown on this page are snapped to the nearest listed NG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NG 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 NG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), the computed maximum profit is $57.50 per contract and the computed maximum loss is -$741.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NG cash-secured put?
- The breakeven for the NG cash-secured put priced on this page is roughly $7.43 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 NG market-implied 1-standard-deviation expected move is approximately 19.32%; 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 NG?
- Cash-secured puts on NG earn premium while a trader waits to acquire NG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NG.
- How does current NG implied volatility affect this cash-secured put?
- NG ATM IV is at 67.40% with IV rank near 37.56%, 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.