ClearValue Investing
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AG Trade Closed for a Win!
🕑 Added 2025-12-20 00:03:07 +0000 UTC
Summary:
AG Position is now closed
Net Gain: 16.3% gain in 2 months (97.9% annualized)
Here’s what happened:
We wrote puts on AG for $12.50 for $0.90 on Oct. 22nd, which got assigned to us. Essentially, we were forced to buy AG at $12.50 but we got compensated $0.90 to do so. Therefore, we really ended up buying AG for $11.60 ($12.50 minus $0.90).
And then because we ended up with the AG shares, we wrote covered calls at the $13 strike expiring on December 19th for $0.64. This reduced our purchase price (cost basis) to $10.96 ($11.60 minus the $0.64 we were compensated to write the covered call).
Because the contract expires today (12/19), and because AG's price is $13+, we are forced to sell AG at $13.00.
Essentially, our purchase price of AG was $10.96 and it was sold today for $13.00. This position was started on October 22nd (please refer to the original Oct 22 post). That is a 16.3% gain in 2 months (we risked $12.50 to start and made $2.04), and an annualized rate of return of 97.9%. Not bad!
Congratulations to everyone that participated in this trade and walked away with a win!
Comments
Annie
Happy New Year! Glad to have joined this vibrant community yesterday. I’m still getting up to speed and would love to understand how often posts are shared here. Any information is appreciated.
Tram Le
I didnt want to lose my shares so I rolled the call option out further. After several rolls and additional premium, my call option now expire in 12/2026 with a $22 strike. If the shares get assigned, it would be a gain of over 100% in one year. The gain will be taxed at capital gain rate by that time.
Jia Yu Yu
Hi Brian, SLV had been growing a lot stronger than AG is the pass half month. Is AG going to catch up the growth of SLV?
Adrian
I just joined this beautiful community today and I am a follower of Brian on YouTube. For me he is the best. I have a question when you place a covered call or put you just sell 100 shares or as many as you want
