ASM 🎯Options Strategy： Bull Call Spread

$Avino Silver & Gold Mines(ASM)$

- Underlying : ASM

- View): Bullish continuation post-breakout, but cognizant of overbought short-term RSI. Expects a move towards $8.50-$8.75, but not necessarily a massive runaway rally.

- Strategy Type : Debit Spread / Directional Bullish

- Option Contract Portfolio:

- Buy 1 ASM Jun 18, 2026 $7.50 Call @ ~$1.275

- Sell 1 ASM Jun 18, 2026 $10.00 Call @ ~$0.50

- Max Gain & Loss:

- Max Gain: ($10.00 - $7.50) - ($1.275 - $0.50) = $1.725 per spread

- Max Loss: Net Debit Paid = $0.775 per spread

- Initial Cost/Credit): Net Debit: ~$0.775

- Greek Exposure:

- Delta: +0.466 (Bullish)

- Theta: -0.004 (Slight time decay cost)

- Vega: +0.003 (Slightly long volatility)

- Gamma: +0.175 (Moderate)

- Rho: +0.002 (Slightly positive to rates)

- Rationale: This strategy is optimal for a "cautiously optimistic" view. It provides leveraged upside exposure (positive Delta) to capture the breakout towards $8.50+, while capping risk and reducing initial capital outlay by selling the higher-strike call. The net debit is low ($0.775) relative to the stock price, offering a favorable risk/reward (Max Gain/Max Loss ≈ 2.2:1). It balances directionality (Delta) with a manageable Theta decay and has minimal Vega exposure, which is prudent given the high but potentially unstable IV (99.57%).

- Time Frame: Medium-Term (Until Jun 18, 2026 expiry)

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