ClearValue Investing

AG Writing of Put Option Position

Added 2025-11-14 17:11:01 +0000 UTC

Three weeks ago, we wrote the AG $12.50 Put Option expiring on November 14th (today) for $0.90.

Right now, the position is up around 57%. If you want to close the position now (buy the $12.50 put to close), then that wouldn't be a bad idea and please enjoy the win.

However, I plan on being assigned the shares. In other words, because the price is below the $12.50 mark, around $12.17, I will be obligated to buy the shares for $12.50. However, I got paid $0.90 a share to write the puts.

Essentially, I will be buying the shares for $11.60 ($12.50 purchase price minus the $0.90 I was compensated to buy it).

Therefore, in plain English, I will not be buying the puts to close the position, I'll be holding the contract until it expires.

Once I get assigned the shares, I plan on writing covered calls on these shares. I feel comfortable getting assigned the shares because silver is showing strong support at $48 a troy oz (currently at $51.50/oz). December will be a big delivery month as well.

On a side note, a few days ago (per my post on October 27th), we bought some some AG shares at $12.33. I'm still waiting to write covered calls on these shares.