ProShares Ultra Silver (AGQ) Covered Calls
ProShares Ultra Silver is a leveraged exchange-traded fund designed to provide daily investment results that correspond to twice (2x) the daily performance of the Bloomberg Silver Subindex. It is a specialized trading tool that utilizes derivative instruments, such as futures contracts and swaps, to achieve its objective. The fund is intended for short-term tactical trading rather than long-term buy-and-hold strategies due to the effects of leverage and compounding.
You can sell covered calls on ProShares Ultra Silver to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for AGQ (prices last updated Wed 11:50 AM ET):
| ProShares Ultra Silver (AGQ) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 120.72 | +1.21 | 120.71 | 120.81 | 2.7M | - | 1.6 |
| Covered Calls For ProShares Ultra Silver (AGQ) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 121 | 9.10 | 111.71 | 8.1% | 174% | |
| May 15 | 121 | 17.00 | 103.81 | 16.4% | 133% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
Want to make money with covered calls? Sign Up For A Free Trial
The ProShares Ultra Silver ETF (AGQ) offers investors a way to magnify their exposure to the price movements of silver. By aiming for 2x the daily performance of its underlying index, the fund provides a powerful, liquid instrument for traders looking to capitalize on short-term trends in the silver market. Because it relies on financial derivatives to track the index, the fund does not hold physical silver bullion.
A critical aspect of AGQ is that its leverage resets daily. This mechanism means that over holding periods longer than a single trading session, the performance of the ETF can deviate significantly from 2x the cumulative return of the silver index. Investors must be aware that this compounding effect, combined with the cost of maintaining leveraged positions, makes the fund most suitable for sophisticated investors with a specific short-term outlook.
Competitive Landscape
AGQ competes within the leveraged commodity space, providing unique benefits for active traders. Key competitive differentiators include:
- Tactical Leverage: Unlike non-leveraged commodity ETFs, AGQ allows for magnified exposure to silver price movements without the need for a margin account or direct trading of futures contracts.
- High Liquidity: As one of the most prominent silver-focused leveraged ETFs, AGQ typically maintains high trading volume, facilitating efficient entry and exit for tactical positions.
- Peer Alternatives: The fund competes with other precious metal and commodity strategies, such as the iShares Silver Trust—which provides direct, non-leveraged physical silver exposure—and the ProShares UltraShort Silver, which offers an inverse (-2x) leverage profile for bearish strategies.
Strategic Outlook and Innovation
The strategic outlook for this fund is tied to the continued interest in silver as both an industrial commodity and a store of value. As markets fluctuate, AGQ remains a primary tool for those who prefer to trade volatility and trend strength through an accessible, exchange-traded format.
Innovation in this area is focused on maintaining precise tracking of the daily index through sophisticated swap and futures management. By providing this specialized exposure, the fund enables a wide range of short-term market participants to implement hedging or speculative strategies with ease.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | CMPX covered calls | |
| 3. | NVDA covered calls | 8. | TLT covered calls | 3. | AAOI covered calls | |
| 4. | KWEB covered calls | 9. | HYG covered calls | 4. | LUNR covered calls | |
| 5. | SPY covered calls | 10. | EWZ covered calls | 5. | RCAT covered calls | |
Want more examples? AGO Covered Calls | AGRO Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
