AGQ Call Option Strategies for March 13th Expiration: Put vs Covered Call Analysis

ProShares Ultra Silver (AGQ) investors have new opportunities with fresh options contracts expiring on March 13th. Through systematic analysis of the AGQ options chain using advanced pricing models, two compelling strategies have emerged: a protective put position and an income-generating covered call option. Understanding both approaches helps investors choose the strategy that best aligns with their risk tolerance and market outlook.

Put Strategy: Attracting Entry Price with Built-in Safety

The put contract at the $362.50 strike presents an interesting entry opportunity for investors considering AGQ positions. With a bid price of $77.80, selling this put obligates the investor to purchase 100 shares at $362.50 per share while immediately collecting the premium. This mechanics work favorably: the effective cost per share drops to $284.70 (before commissions), representing a significant discount to the current market price of $374.06.

The $362.50 strike sits approximately 3% below today’s trading level, making it an out-of-the-money contract. Statistical analysis suggests a 72% probability that this put expires worthless—meaning no purchase obligation and the premium becomes pure income. Should this happen, the $77.80 premium generates a 21.46% return on the capital committed for this single period, or 182.35% when annualized. Investors track this metric—called YieldBoost—to evaluate income potential across different option strategies.

AGQ’s twelve-month trading chart shows how the $362.50 strike aligns with historical price movements, helping investors assess the reasonableness of this entry point relative to past volatility patterns.

Call Option for Income Generation: The Covered Call Strategy

On the call side, the $400.00 strike call option offers a fundamentally different approach. Investors who purchase AGQ shares at the current $374.06 level can simultaneously sell this call option (known as a covered call) to generate immediate income. By agreeing to sell shares at $400.00, the investor collects $126.20 per share in premium.

This combination produces compelling returns: if the stock rises and gets called away at expiration, the total gain reaches 40.67% (excluding dividends), combining both the share appreciation and the premium collected. This attractive return level comes before broker commissions but represents meaningful income potential on a per-month basis.

However, this call option strategy involves an important trade-off. If AGQ shares surge significantly beyond $400, the investor’s gains cap at that level—the upside gets “called away.” Whether to accept this limitation depends on examining AGQ’s business fundamentals and assessing how likely a dramatic rally truly is.

The $400.00 strike represents roughly a 7% premium above current price levels, placing it out-of-the-money. Current analytics suggest 33% odds of expiration worthless, meaning the investor retains both shares and the full premium collected. In this scenario, the $126.20 premium alone delivers a 33.74% return boost (or 286.66% annualized), adding substantial income without giving up the stock position.

Volatility Context: Elevated Premiums Support Income Strategies

The premium pricing on both contracts reflects significant implied volatility. The put option shows 209% implied volatility while the call option reflects 216%—both substantially higher than the 78% trailing twelve-month realized volatility. This gap between implied and realized volatility often creates attractive premium-collection opportunities, benefiting both put sellers and call option income strategies.

Choosing Between Strategies

The put strategy suits investors seeking discounted entry with a 72% probability of keeping premium income tax-free. The call option approach appeals to those already positioned in AGQ or comfortable owning it, generating regular income with defined upside parameters. Both leverage elevated volatility conditions that Stock Options Channel continues monitoring and analyzing through its YieldBoost framework.

For additional options contract opportunities and detailed analytics, visit StockOptionsChannel.com.