AG Trade Closed for a Win! (Patreon)

Summary:
AG Position is now closed
Net Gain: 16.3% gain in 2 months (97.9% annualized)

Here’s what happened:

1. 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).

2. 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).

3. Because the contract expires today (12/19), and because AG's price is $13+, we are forced to sell AG at $13.00.

4. 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!