Investors in First Majestic Silver Corp (AG) began trading new options for expiration in March 2027 on October 10, 2023. A notable put contract at a $15.00 strike price has a current bid of $2.24, offering potential buyers a cost basis of $12.76 per share, approximately 25% below the current trading price of $20.05. The odds of the put contract expiring worthless are estimated at 79%, suggesting a possible 14.93% return on cash commitment if it does, or 16.72% annualized.
On the calls side, a call contract at a $22.00 strike price is available with a bid of $4.75. If an investor purchases shares at $20.05 and sells the call, the total return could reach 33.42% if the stock is called away by March 2027. The chances of the call contract expiring worthless are estimated at 39%, presenting a potential 23.69% additional return, or 26.52% annualized. The implied volatility is 91% for the put and 75% for the call, while the actual trailing twelve-month volatility is 73%.
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