Investors in First Majestic Silver Corp (AG) can now trade new options set to expire in February 2026. A significant put contract at a $15.00 strike price is currently bid at 50 cents, representing a 12% discount from the current stock price of $17.04. Should the contract expire worthless, it could yield a 3.33% return on the cash commitment, equating to a 27.65% annualized return.
Additionally, a call contract at a $20.00 strike price, also bid at 50 cents, represents a 17% premium over the current stock price. If the stock is sold at this strike price by expiration, investors could see a total return of 20.31%. Current analytics suggest a 61% chance that the call will expire worthless, allowing investors to retain their shares and the premium for a potential 2.93% additional return, or 24.34% annualized.
Implied volatility for the put option stands at 119%, while the call option is at 87%. The actual volatility over the past year is calculated at 66%.
