New Options Available for First Majestic Silver Corp Investors

A recent report highlights the introduction of new options for First Majestic Silver Corp, providing investors with opportunities for covered calls. The analysis reveals potential returns and market dynamics affecting stock performance.

Date: 26-09-2024

AI Rating: 7

The report discusses the availability of new options for First Majestic Silver Corp (AG) with a focus on a call contract at the $7.00 strike price. The current stock price is $6.51, making the call option out-of-the-money with approximately an 8% premium.

Investors can potentially achieve a total return of 8.60% if the stock gets called away, excluding dividends. It also indicates a 45% chance that the call contract may expire worthless, allowing investors to keep their shares and the premium collected, boosting returns by 1.08% (or 9.12% annualized).

Implied volatility for the current options is high at 148%, contrasting significantly with the actual trailing twelve month volatility of 61%. This suggests a market that anticipates higher price fluctuations.

Stocks: AG