Puts Popular for Surging Silver Stock

The equity has fallen 6% in 2020

Deputy Editor
Dec 7, 2020 at 3:25 PM
facebook twitter linkedin

Already in 2020, the shares of First Majestic Silver Corp (NYSE:AG) have soared as high as $14.57,and tumbled as low as $4.17 -- both its highest and lowest levels since 2016. Meanwhile, since September, the equity has traded between $12.60 and $9.30, and was last seen up 4% to trade at 11.45. As a result, First Majestic Silver stock is looking to notch its fifth-consecutive close above its 150-day moving average, and boasts a respectable 9.1% year-over-year gain.

AG Chart December 7

Despite the positive price action today, options bears are circling the silver stock. So far today, 22,000 puts have crossed the tape -- six times the average intraday volume, and more than double the number of calls traded. Most popular by far is the April 2021 12-strike put, with positions being opened here, followed by the January 2021 10-strike put. This suggests these traders are speculating on a lot more downside for AG by the time these contracts expire. 

Lastly, although First Majestic Silver stock has shed 6% year-to-date, analysts are still overwhelmingly optimistic. Specifically, all three in coverage sport a "buy" rating.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1