ClearValue Investing
patreon
Wrote AG Calls
🕑 Added 2025-11-17 14:45:04 +0000 UTCI just wrote these call options on the AG shares that got assigned.
These are the AG $13.00 strike expiring on December 19th.
Here’s what happened:
We wrote puts on AG for $12.50 that expired last Friday for $0.90. 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).
Today, we wrote the call option at the $13.00 strike for 64 cents expiring on December 19th. If AG is at $13.00+ on December 19th, then we will be forced to sell our AG shares at $13.00.
Scenario if AG is $13.00+ on December 19th -We are being compensated 64 cents for this deal. Essentially, if AG shares are $13.00 or higher on December 19th, then we would end up selling AG for $13.00, but our cost-basis or “purchase price” would be $10.96 ($11.60 minus 64 cents).
Scenario if AG is under $13.00 on December 19th - if AG is under $13.00 on December 19th, then we keep the $0.64 and the AG shares.
What we did today was a covered call.
For a tutorial, please watch this video:
https://youtu.be/D5Rjx_7XG2U?si=AnH-yv5Wml2BDXOf
Comments
ClearValue Tax
Hi Oscar, yes, I like to think of writing covered calls as collecting dividends. Personally, for covered calls, I like writing a strike price where I would be happy to sell it in that timeframe. I want SLV to go up to $100, but if I had to sell it for $57 in 6/7 weeks time, I wouldn't be too upset with that. However, I think the premium is just way too low on SLV at the moment.
ClearValue Tax
Hi AK, if you want to learn more about the silver market, you must get a better understanding of: 1. The COMEX 2. The LBMA 3. The supply & demand (industry, Chinese demand, India's demand) That would be my suggestion to start. In terms of resources or where to learn about these, it's just starting your detective work or investigation. Let me know if you get stuck somewhere.
AK
Do you have any recommended resources for learning about the silver market?
Oscar Silva
Watched the intro to options and the covered calls videos, great stuff I’ve been trying to dive deeper. Noticed that SLV call options for 12/31 have a strike price of $57 have a premium of $0.24. Not as much return for more money but figured I could use my SLV another way
