U.S. Gold Corp. (ticker: USAU)
20240524
U.S. Gold Corp. (ticker: USAU) is a publicly traded gold exploration and development company based in the United States. Focused on its core properties in Nevada and Wyoming, U.S. Gold Corp. aims to uncover and develop highpotential gold resources. The company's flagship project, the CK Gold Project in Wyoming, is noteworthy for its promising geological characteristics and potential for significant gold and copper yield. Additionally, U.S. Gold Corp. is advancing the Keystone project in Nevada, which has shown encouraging exploration results. The company employs a strategic approach to its exploration and development efforts, leveraging advanced geological methods and techniques to identify and unlock value within its portfolio. Financially, U.S. Gold Corp. maintains a lean operational model to maximize efficiency and costeffectiveness, essential for navigating the volatile and capitalintensive mining industry. As of its latest reporting, the company continues to focus on advancing its projects through comprehensive exploration programs, resource definition drilling, and working towards feasibility studies, aiming to position itself as a key player in the U.S. gold mining sector.
Total Employees  4  Previous Close  5.41  Open Price  5.46 
Day Low  5.46  Day High  5.99  Beta  1.186 
Forward P/E  4.217  Volume  162,310  Average Volume  102,606 
Average Volume (10 days)  249,030  Bid  5.76  Ask  5.93 
Market Cap  54,313,872  52Week Low  2.92  52Week High  7.06 
50Day Average  4.3422  200Day Average  3.76795  Enterprise Value  47,935,328 
Floating Shares  7,739,817  Shares Outstanding  9,332,280  Shares Short  62,738 
Short Ratio  0.64  Book Value  1.572  Price to Book  3.702 
Net Income  6,717,283  Trailing EPS  0.73  Forward EPS  1.38 
Return on Assets  0.25093  Return on Equity  0.39873  Total Cash  2,636,548 
EBITDA  8,041,018  Total Debt  84,259  Quick Ratio  9.131 
Current Ratio  10.5  Debt to Equity  0.574  Free Cash Flow  4,076,314 
Operating Cash Flow  7,475,733  Last Dividend Value  43.2  52Week Change  0.3696 
S&P 52Week Change  0.2526  Current Price  5.82  Target High Price  15.25 
Target Low Price  11.0  Target Mean Price  13.13  Target Median Price  13.13 
Recommendation Mean  2.0  Number of Analyst Opinions  2  Enterprise to EBITDA  5.961 
Sharpe Ratio  0.881215  Calmar Ratio  1.298199 
Sortino Ratio  16.166155  Treynor Ratio  0.440453 
USAU demonstrates a notable blend of technical, fundamental, and riskadjusted return profiles. The stocks recent price movement from $3.72 to $5.99 indicates substantial volatility with a peak surge up to $7.06. The OnBalance Volume (OBV), which has steadily increased, hints at accumulating buying pressure over the observed period. The Moving Average Convergence Divergence (MACD) histogram also points towards a possible bearish divergence, suggesting a potential slowdown in the upward momentum witnessed in recent months.
Fundamentally, USAU's balance sheet and cash flow statements reveal challenging conditions. With significant net income losses, negative cash flows, and high operating expenses, current financial health reflects a potential red flag. However, the companys considerable amount of cash and cash equivalents of $7,822,930 provides a liquidity cushion, aiding shortterm obligations.
Financial ratios further deepen the insight:  Sharpe Ratio of 0.8812 indicates a reasonable level of riskadjusted return but suggests that there are betterperforming assets out there relative to their risk.  Sortino Ratio of 16.1662 shows excellent performance relative to downside risk, implying strong returns with less downside volatility.  Treynor Ratio of 0.4405 provides insight into how the stock performs relative to systematic risk (market risk), hinting at moderate performance on this measure.  Calmar Ratio of 1.2982 offers a moderate return compared to its maximum drawdown, reflecting a mix of growth potential and risk.
From a predictive standpoint, considering the mixed technical and fundamental signals, USAU likely faces a period of consolidation or correction before any potential renewed upward movement. The buying pressure inferred from OBV could counterbalance the bearish signals from MACD histogram, suggesting that the stock might find support around current levels ($5.46  $5.99) before making a decisive move.
In conclusion, while USAU shows potential based on recent trading activity and liquidity position, substantial improvement in financial fundamentals is crucial for sustained upward movement. Investors should closely monitor upcoming earnings reports and operational updates for signs of turnaround or continued distress.
In evaluating U.S. Gold Corp. (USAU) using the investment principles outlined in "The Little Book That Still Beats the Market," we observe concerning metrics in both return on capital (ROC) and earnings yield. The ROC for USAU stands at an alarming 48.15%, which indicates that the company is not only failing to generate a positive return on its invested capital but is also significantly destroying value with each dollar invested. This negative ROC suggests severe inefficiencies or challenges within the company's operational or capital allocation strategies. Additionally, the earnings yield is calculated at 15.38%, reflecting that the company is not generating positive earnings relative to its enterprise value. In simpler terms, USAU's current earnings do not justify its valuation, making it fundamentally unattractive under the framework of seeking high earnings yield and high ROC. These metrics highlight substantial financial and managerial issues that potential investors should carefully consider.
Alpha ()  0.0034 
Beta ()  1.15 
RSquared (R2)  0.68 
PValue  0.0009 
Standard Error  0.047 
The alpha value of 0.0034 suggests that USAU underperforms the market (represented by SPY) by an average of 0.34% over the observed period when adjusted for risk as represented by the beta. This negative alpha indicates that after accounting for market movements, USAU does not generate excess returns independently. With USAUs beta at 1.15, it exhibits a higher level of volatility compared to SPY, meaning it is 15% more volatile than the market.
Furthermore, the Rsquared value of 0.68 indicates that 68% of USAU's movements can be explained by changes in SPY, signaling a relatively strong correlation between the two. The pvalue of 0.0009 signifies the statistical significance of the relationship between USAU and SPY, underpinning the reliability of this regression model. The standard error of 0.047 shows the average distance that USAUs observed values deviate from the regression line, providing a measure of the precision of the coefficient estimates.
The SEC 10Q filing for U.S. Gold Corp. (USAU) pertains to the quarter ending January 31, 2024. The company is a gold and precious metals exploration firm focusing on the CK Gold Project in Wyoming, the Keystone Project in Nevada, and the Challis Gold Project in Idaho. It is structured to comply with Regulation SK 1300 and has established proven and probable mineral reserves specifically at the CK Gold Project.
Financially, U.S. Gold Corp.'s unaudited condensed consolidated balance sheet as of January 31, 2024, shows a significant reduction in cash, down to approximately $2.64 million from $7.82 million on April 30, 2023, and a decline in total current assets to approximately $3.03 million from $8.43 million. The company's total assets also decreased to about $18.86 million from $24.18 million during the same period, reflecting a financial contraction largely attributed to the ongoing utilization of cash in its operating activities and project developments.
The company's liabilities as of January 31, 2024, consist of a total of approximately $4.19 million. This includes a warrant liability valued at approximately $3.14 million, asset retirement obligations at approximately $0.30 million, and both current and longterm operating lease liabilities aggregating to about $0.08 million. Significant liabilitiestoassets ratio and working capital of approximately $2.74 million, down from $8.05 million as of April 30, 2023, underscore ongoing financial challenges.
U.S. Gold Corp.'s operating expenses for the nine months ended January 31, 2024, totaled approximately $5.97 million, down from $7.26 million for the same period in the previous year. This decrease was primarily due to a reduction in compensation costs by $265,000, exploration costs by $214,000, and professional and consulting fees by $747,000, offset by an increase of $67,000 in general administrative expenses. The company incurred a net loss of about $4.84 million for the nine months ended January 31, 2024, an improvement from a net loss of $5.74 million for the same period in the prior year.
Despite reporting other income of approximately $1.13 million for the nine months ended January 31, 2024, primarily due to changes in the fair value of warrant liabilities, the financial outlook remains tentative. The net decrease in cash flow from operations amounting to approximately $5.19 million for the nine months emphasizes the ongoing liquidity issues. The company's lack of revenue generation, ongoing project expenses, and continued need for capital raise substantial concerns about its ability to meet future financial obligations without securing additional financing.
The filing also highlights the companys commitment to continue working with the Wyoming Department of Environmental Quality (WDEQ) on various permitting efforts for the CK Gold Project, signaling sustained efforts to advance its major projects despite the challenging financial landscape.
On April 15, 2024, U.S. Gold Corp. (NASDAQ: USAU) made headlines by announcing a $4.9 million registered direct offering. The company entered into a securities purchase agreement with select investors to sell 1.4 million shares of common stock at a price of $3.50 per share. Alongside this registered offering, U.S. Gold also issued unregistered warrants in a concurrent private placement, allowing for the purchase of another 1.4 million shares at an exercise price of $4.48 per share. These warrants are set to become exercisable six months after issuance and will remain valid for five years. The closing of this sale, subject to customary conditions, is expected around April 19, 2024.
This financial maneuver is facilitated through a "shelf" registration statement on Form S3 (File No. 333262415), which was declared effective by the United States Securities and Exchange Commission (SEC) on May 12, 2022. However, it is crucial to note that the shares underlying the warrants are being sold under private placement provisions and do not form part of this registration statement. This move is compliant with Section 4(a)(2) of the Securities Act of 1933, highlighting the legal framework under which these securities are offered.
The capital raised comes at an opportune time, with gold prices nearing record highs, recently surpassing $2,400 per ounce. This spike in gold prices presents a considerable advantage for junior mining companies such as U.S. Gold. Edward Karr, the founder of U.S. Gold, emphasized that the elevated gold prices significantly boost the profitability potential of junior mining firms. Karr asserts that the company's market capitalization of $300 million is justifiable, given that U.S. Gold's assets include approximately 1.5 million proven and probable gold equivalent ounces. He noted that current analyst metrics value proven gold reserves at roughly 10% of the spot gold price, indicating substantial valuation upside for U.S. Gold and similar entities in the sector.
U.S. Gold Corp. focuses on the exploration and development of gold and copper projects within the U.S., with a diversified portfolio that includes the CK Gold Project in Southeast Wyoming, the Keystone exploration property in Nevada, and the Challis Gold Project in Idaho. Each of these properties is at various stages of development and exploration. The CK Gold Project, in particular, benefits from a Preliminary Feasibility Study conducted by Gustavson Associates, LLC, confirming its significant exploration potential.
The CK Gold Project is especially promising, with U.S. Gold Corp. preparing to secure key operational permits, including the Mine Operating Plan and Closure Plan. The successful execution of the current fundraising strategy will likely enhance the company's capabilities to advance these projects further, leveraging the high gold prices to potentially deliver substantial returns to investors.
The company recently announced its Annual General Meeting (AGM) scheduled for April 26, 2024. This virtual event will allow shareholders to engage in critical governance activities, including the election of directors and the ratification of auditors. Shareholders eligible to vote include those who held stock as of the record date, February 29, 2024. Proxy materials with voting instructions have been distributed to these shareholders, ensuring full participation.
U.S. Gold Corp., through its strategic initiatives and methodical resource management, aims to capitalize on the current favorable market conditions. As the company progresses, it anticipates that rising gold prices combined with increasing operational success will create ample opportunities for growth and increased profitability.
Additionally, U.S. Gold Corp. recently announced that it would participate in the Society for Mining, Metallurgy, and Exploration's (SME) 9th Current Trends in Mining Finance Conference scheduled from May 2022, 2024, in New York. This conference addresses key issues in mining finance, particularly in the context of the industry's transition towards sustainable practices, renewable energy, and electric vehicles. George Bee, the President and CEO of U.S. Gold, will play a significant role as a guest speaker and panelist. He will deliver a speech on "Mineral Resource Development Key Considerations: All Mineral Resources Are Not Created Equal" and participate in panel discussions on cost overruns in mining projects and the future of mining.
The company's engagement at the SME conference represents a significant opportunity to demonstrate its commitment to sustainable practices and strategic resource management. This involvement highlights U.S. Gold Corp.'s active engagement with industry advancements and dedication to pioneering developments that align with the future direction of mining and resource management.
Overall, U.S. Gold Corp.'s financial strategy, bolstered by favorable market conditions, its comprehensive project portfolio, and active industry participation, underscores the company's potential for significant growth and value creation for its shareholders. For continued updates and further information, U.S. Gold Corp. provides comprehensive resources through their official communication channels and website.
U.S. Gold Corp. (USAU) has shown considerable volatility in its asset returns over the period from May 28, 2019, to May 24, 2024. The ARCH model indicates significant but somewhat stable volatility as captured by the omega coefficient. While the alpha coefficient implies some degree of shortterm fluctuation, it is not highly significant.
Dep. Variable  asset_returns 
Rsquared  0.000 
Adj. Rsquared  0.001 
LogLikelihood  3,922.09 
AIC  7,848.18 
BIC  7,858.45 
No. Observations  1,258 
Df Residuals  1,258 
Df Model  0 
omega  28.4840 
std err  14.143 
t  2.014 
P>t  0.044 
95.0% Conf. Int.  [0.763, 56.205] 
alpha[1]  0.0823 
std err (alpha[1])  0.120 
t (alpha[1])  0.686 
P>t (alpha[1])  0.493 
95.0% Conf. Int. (alpha[1])  [0.153, 0.318] 
To evaluate the financial risk of a $10,000 investment in U.S. Gold Corp. (USAU) over one year, we employ a blend of volatility modeling and machine learning predictions. This combined approach allows us to comprehensively assess both the stock's volatility and future returns, offering a granular understanding of the potential risks involved.
Volatility Modeling
Volatility modeling is crucial in understanding the extent of variability in U.S. Gold Corp.'s stock price movements. By examining historical price data, this model captures the persistency and clustering of volatility over time. This process identifies patterns in the stock's price fluctuations, thus providing a statistical framework to forecast future volatility. Consistent periods of high volatility signal greater investment risk due to unpredictable price swings, while stable periods indicate lower risk.
Machine Learning Predictions
For predicting future returns, machine learning predictions, specifically utilizing ensemble techniques, play a pivotal role. The algorithm analyzes an array of historical and potentially other external factors to predict future stock prices and returns. It considers various features such as past returns, trading volume, macroeconomic indicators, and other relevant data points. This method compensates for the nonlinear and complex relationships that traditional models might overlook. By forecasting future price movements, the model contributes to a more informed risk management strategy.
Calculated Value at Risk (VaR)
The Value at Risk (VaR) at a 95% confidence level provides a quantifiable measure of financial risk. For our $10,000 investment in U.S. Gold Corp., the VaR is calculated to be $573.30. This figure indicates that there's a 5% chance that the investment could decline in value by more than $573.30 over a oneyear period. Essentially, while the average expected return might be positive based on historical data and machine learning forecasts, the VaR statistic emphasizes the worstcase scenario within a certain confidence interval.
By integrating volatility modeling to understand the inherited market risks and machine learning predictions to anticipate future stock movements, we gain a comprehensive risk profile of the equity investment. This combined approach not only highlights the typical price behavior and potential deviations but also equips investors with robust risk metrics such as VaR, emphasizing the critical financial risk elements that need consideration in equity investment.
Long Call Option Strategy
When analyzing long call options for U.S. Gold Corp. (USAU) with a target price 2% higher than the current stock price, it is crucial to consider the Greeks values in conjunction with the time to expiration, strike prices, premium, potential return on investment (ROI), and projected profits. Here, we examine the potential profitability and associated risks of five distinct options with varying expiration dates and strike prices.
NearTerm Options:
 Expiration Date: 20240621, Strike Price: $2.50
 Delta: 0.5733
 Gamma: 0.0194
 Vega: 0.0245
 Theta: 0.0673
 Rho: 0.0018
 Premium: $3.38
 ROI: 0.0258
 Profit: $0.0872
This nearterm option expiring on June 21, 2024, with a strike price of $2.50, presents a moderate delta of 0.5733, indicating a reasonable sensitivity to changes in the underlying stock price. The theta value suggests a relatively high time decay, potentially reducing the option's value more rapidly. However, the profit margin of $0.0872 and the ROI of 0.0258 are modest but reflective of calculated and lowerrisk investment strategies.
MediumTerm Options:
 Expiration Date: 20240816, Strike Price: $2.50
 Delta: 0.0646
 Gamma: 0.0125
 Vega: 0.1920
 Theta: 0.0053
 Rho: 0.0005
 Premium: $3.26
 ROI: 0.0636
 Profit: $0.2072
This mediumterm option, with a strike price of $2.50 expiring on August 16, 2024, showcases a lower delta of 0.0646, implicating less sensitivity to the stock price fluctuations. The considerably low theta implies minimal time decay risk, while the high vega indicates substantial sensitivity to volatility changes. The ROI of 0.0636 and profit of $0.2072 make it an attractive choice for investors expecting higher volatility and moderate stock movement.
LongTerm Option:
 Expiration Date: 20240621, Strike Price: $5.00
 Delta: 0.0279
 Gamma: 0.0455
 Vega: 0.0922
 Theta: 0.0019
 Rho: 0.0001
 Premium: $0.80
 ROI: 0.2090
 Profit: $0.1672
For a longer investment horizon, the option expiring on June 21, 2024, with a $5.00 strike price highlights a very low delta of 0.0279, suggesting minimal responsiveness to immediate price changes. The higher gamma and vega values support significant gains from volatility changes, offset by a low theta to minimize time decay risks. This option reveals a strong ROI of 0.2090 and a profit of $0.1672, making it an appealing highrisk, highreward opportunity.
Comparison and Analysis:
Each of these options underscores different investment outlooks, risk tolerances, and potential profitability. Nearterm options like the June 21, 2024, strike price $2.50 calls, feature solid responsiveness to immediate stock price movements but suffer from higher time decay. Mediumterm choices like the August 16, 2024, $2.50 strike price offer the advantage of lower time decay with increased sensitivity to volatility, providing a balanced riskreward scenario. Longterm high strike price options such as the June 21, 2024, $5.00 calls, though less responsive to immediate stock price shifts, exhibit superior ROI driven by volatility and extended time horizons.
Ultimately, the most profitable option, determined by the highest ROI, is the longterm $5.00 strike price expiring June 21, 2024, with a 0.2090 ROI, offering a premium balance between risk and reward. Investors should choose based on their financial goals, market outlook, and risk preferences, aligning with the provided analysis to optimize their returns from these various options.
Short Call Option Strategy
When analyzing the most profitable short call options for U.S. Gold Corp. (USAU), it's crucial to balance the potential profit against the risk of having shares assigned, especially with the target stock price set to 2% under the current stock price. The key metrics from the Greeks such as delta, gamma, vega, theta, and rho play pivotal roles in understanding the risk and profitability of each option. Below are five promising short call options across different expiration dates:
NearTerm Expiration ('20240621'):
 Strike Price: $7.5, Premium: $0.1
 Profit: $0.1
 ROI: 100%
 Delta: 0.00003
 Gamma: 0.00011
 Vega: 0.0002
 Theta: 0.000001
 Rho: 0.0000001
Given the minimal delta, there's negligible risk of the option being in the money (ITM) and shares being assigned. The premium is relatively small but offers a significant ROI of 100%. This makes it an enticing option with minimal risk.
 Strike Price: $5.0, Premium: $0.8
 Profit: $0.066804
 ROI: 8.35%
 Delta: 0.0279
 Gamma: 0.0455
 Vega: 0.0922
 Theta: 0.0019
 Rho: 0.0001
This option offers a moderate delta, suggesting a slight risk of being ITM, but the higher premium and promising ROI make it worth considering. The potential profit and lower risk compared to deeper ITM options present a balanced trade.
MidTerm Expiration ('20240816'):
 Strike Price: $7.5, Premium: $0.4
 Profit: $0.4
 ROI: 100%
 Delta: 0.00064
 Gamma: 0.00052
 Vega: 0.0053
 Theta: 0.000032
 Rho: 0.0000071
The increased premium and consistent ROI of 100% coupled with a nearnegligible delta make this option attractive. The minimal risk of assignment with substantial profit potential highlights this as a very profitable option within the midterm range.
LongTerm Expiration ('20241115'):
 Strike Price: $7.5, Premium: $0.5
 Profit: $0.5
 ROI: 100%
 Delta: 3.69e19
 Gamma: 1.25e18
 Vega: 1.28e17
 Theta: 2.04e20
 Rho: 9.80e21
This longdated option maximizes ROI while virtually eliminating assignment risk with a delta close to zero. The profitable premium, despite the long duration, makes it a superior choice with minimal risk exposure.
 Strike Price: $5.0, Premium: $1.2
 Profit: $0.466804
 ROI: 38.90%
 Delta: 0
 Gamma: 0
 Vega: 0
 Theta: 0
 Rho: 8.89e16
Although delta and other greeks read as zero, indicating almost no movement in option price relative to the underlying stock, the high ROI and significant premium command attention for those willing to take on near negligible risk over a long period.
Conclusion:
 Most Profitable with Minimal Risk: The $7.5 strike options across all expiration dates offer the best ROI, especially given the low deltas which minimize assignment risk.
 Balance of Profit and Duration: The $5.0 strike options present moderate risk and reasonable premium, particularly for shorter durations.
 High ROI and Low Risk: For minimal risk and steady profits, the longterm $7.5 strike options stand out remarkably.
By diversifying expiration dates and strike prices, while focusing mainly on options with high ROI and low deltas, investors can maximize profit while minimizing the probability of having shares assigned.
Long Put Option Strategy
Analyzing long put options for U.S. Gold Corp. (USAU), our primary focus will be keeping a close watch on the target stock price, which is 2% over the current stock price. The options chain analysis is essential to identify the most profitable options while considering specific Greek values such as delta, gamma, vega, theta, and rho, alongside the premium and potential return on investment (ROI).
Near Term Option (Days to Expiry: 27)
Strike Price: $7.5, Expiration Date: June 21, 2024  Delta: 0.5703  Gamma: 0.0112  Vega: 0.0352  Theta: 0.0674  Rho: 0.0055  Premium: $1.50  ROI: 2.19%  Profit Potential: 3.28%
Risk and Reward
The nearterm option with a 27day expiry (June 21, 2024) encompasses a strike price of $7.5. With a delta value of 0.5703, it indicates a moderate sensitivity to the underlying stock's price changes. The negative theta of 0.0674 signifies time decay, which can erode option value more rapidly as expiration approaches. However, the moderate vega of 0.0352 highlights potential gains if volatility spikes. The premium is $1.50, implying an initial outlay, but the ROI at 2.19% and potential profit of 3.28% present a lucrative shortterm opportunity, particularly if the stock moves favorably within this constrained timeframe.
MediumTerm Option (Days to Expiry: 180)
Strike Price: $7.5, Expiration Date: December 20, 2024  Delta: 0.5703 (assumed)  Gamma: 0.0112 (assumed)  Vega: 0.0352 (assumed)  Theta: 0.0674 (assumed)  Rho: 0.0055 (assumed)  Premium: $2.00 (estimated)  ROI: 5.00% (estimated)  Profit Potential: 6.50% (estimated)
Risk and Reward
For the mediumterm option set to expire on December 20, 2024, we use the July values to estimate. The option's delta suggests similar sensitivity, but theta's longer duration translates to slower time decay impact. Given potentially heightened volatility over six months, increased vega makes this option more valuable during market fluctuations. Despite an estimated premium of $2.00, the higher ROI (5.00%) and profit potential (6.50%) underscore its appeal for traders who want to balance time decay with potential volatility benefits.
Long Term Option (Days to Expiry: 365)
Strike Price: $7.5, Expiration Date: June 20, 2025  Delta: 0.5703 (assumed)  Gamma: 0.0112 (assumed)  Vega: 0.0352 (assumed)  Theta: 0.0674 (assumed)  Rho: 0.0055 (assumed)  Premium: $2.50 (estimated)  ROI: 8.00% (converted)  Profit Potential: 10.00% (calculated)
Risk and Reward
The longterm option expiring on June 20, 2025, will see even more time for possible price shifts due to broader market events. The delta and other Greek values indicate a cautious but beneficial risk stance when market predictions span a year. Though a premium of $2.50 must be accounted for, an ROI of 8.00% and profit potential nearing 10.00% suggest a significant gain. This choice is optimal for investors who can endure the waiting period, assuming market conditions do not drastically shift unfavorably.
Conclusion
In summary, the five choices for U.S. Gold Corp. long put options have been carefully selected based on expiration dates and strike prices. Nearterm options offer rapid but modest gains, mediumterm options strike a balance between time and volatility, and longterm options maximize potential profit. Traders must assess risk tolerance levels and market outlook to select the most strategic and profitable options suitable for their portfolios.
Short Put Option Strategy
When evaluating short put options for U.S. Gold Corp. (USAU), the aim is to identify the most profitable options while minimizing the risk of having shares assigned. The given data contains various options characterized by their greeks and other relevant metrics such as premium and ROI. We will focus on quantifying the risk and reward of these options, particularly those that show high profitability and controlled risk levels.
To aim for a target stock price 2% under the current market price, we must filter out options deep in the money, as these have a higher probability of being assigned. This analysis will give a preference to options with lower delta values, as delta indicates the likelihood of being in the money at expiration.
NearTerm Options

Expiration Date: 20240621, Strike Price: $2.5

Greeks:
 Delta: 0.1061 (low probability of being assigned)
 Gamma: 0.0578
 Vega: 0.2445
 Theta: 0.0200
 Rho: 0.0006
 Premium: $0.05
 ROI: 100%
Risk: The delta of 0.1061 signifies a low probability of having the shares assigned. The low premium ($0.05) indicates less risk and a minimal loss in a worstcase scenario. Given the short time to expiration (27 days), the theta (time decay) is relatively high, eroding the option's value quickly but benefiting a short put seller.
Reward: Potential profit is capped at $0.05 per share. With 100% ROI, this short put is attractive for traders willing to take on minimal risk for a quick gain.

Expiration Date: 20240621, Strike Price: $5.0

Greeks:
 Delta: 0.5365 (moderate probability of being assigned)
 Gamma: 0.0563
 Vega: 0.1285
 Theta: 0.0651
 Rho: 0.0035
 Premium: $0.30
 ROI: 100%
Risk: The option's higher delta (0.5365) indicates a higher risk of assignment. Nevertheless, the relatively higher premium ($0.30) might compensate for the risk if the stock stays above the strike price.
Reward: This short put offers a significant potential profit of $0.30 per share with 100% ROI. The short duration means high theta decay benefits the option seller but also necessitates close monitoring to mitigate assignment risk.
MediumTerm Option

Expiration Date: 20240816, Strike Price: $5.0

Greeks:
 Delta: 0.1865 (low probability of being assigned)
 Gamma: 0.0000
 Vega: 0.0001
 Theta: 0.0215
 Rho: 0.0113
 Premium: $0.55
 ROI: 100%
Risk: The low delta (0.1865) implies a lower probability of assignment, reducing the risk significantly. The higher premium ($0.55) ensures a good cushion against potential declines in stock price.
Reward: With 100% ROI, this option is highly profitable, offering $0.55 per share. Given the longer time frame (83 days), the vegas low influence (0.0001) suggests that volatility changes will not significantly affect the options price, providing stability.
LongTerm Options

Expiration Date: 20241115, Strike Price: $2.5

Greeks:
 Delta: 0.0296 (very low probability of being assigned)
 ...
 Gamma: 0.0000
 Vega: 0.0003
 Theta: 0.0032
 Rho: 0.0117
 Premium: $0.14
 ROI: 100%
Risk: The delta of 0.0296 indicates a minimal chance of assignment. The low theta value reflects slow time decay, meaning the option will retain value over a longer period.
Reward: Potential profit is $0.14 per share, with substantial ROI. Given the extended time to expiration (174 days), stability in the stock price is critical, but manageable due to the low delta.

Expiration Date: 20241115, Strike Price: $5.0

Greeks:
 Delta: 0.0296 (very low probability of being assigned)
 ...
 Gamma: 0.0000
 Vega: 0.0000
 Theta: 0.0029
 Rho: 0.0233
 Premium: $0.60
 ROI: 100%
Risk: Similarly, with a delta of 0.0296, the risk of assignment is very low. Time decay (theta) is minimal, and changes in interest rates will have a slightly more pronounced impact due to the higher rho value.
Reward: This short put option is the most profitable, with a potential profit of $0.60 per share and a perfect ROI of 100%. The long duration means that careful monitoring is required, but the exceptionally low delta reduces the assignment risk considerably.
Conclusion
The identified options present various riskreward profiles suitable for different risk appetites and market outlooks. The aim is to pick options with low delta values to minimize assignment risk while ensuring attractive premiums and returns. Options expiring on 20240816 (strike price: $5.0) and 20241115 (both strike prices: $2.5 and $5.0) offer balanced and profitable approaches with reduced risk of having shares assigned.
Vertical Bear Put Spread Option Strategy
When analyzing the vertical bear put spread options strategy for U.S. Gold Corp. (USAU), the goal is to select options that maximize profitability while minimizing the risk of assignment. The target stock price is set at 2% over or under the current stock price, and our primary focus is on nearterm to longterm strategies that offer the best balance between risk and reward.
1. NearTerm Strategy: June 21, 2024, 5.0 Strike Short Put and 7.5 Strike Long Put
 Short Put (Expiration: June 21, 2024, Strike: 5.0)
 Delta: 0.536
 Premium: $0.3
 Profit: $0.3
 Long Put (Expiration: June 21, 2024, Strike: 7.5)
 Delta: 0.570
 Premium: $1.5
 Profit: $0.032796
In this strategy, we short the put with a strike price of $5.0 and buy the put with a strike price of $7.5. The combined delta indicates a strong bearish position, favorable for the expectation that the stock price will decline within the next 27 days. The maximum possible profit occurs if USAU drops below $5.0, where the short put's premium of $0.3 and the intrinsic value of the long put ($2.5  $1.5) results in significant gain. However, the risk remains if the stock price ends slightly above the $5.0 strike, leading to a potential assignment of shares.
2. MediumTerm Strategy: August 16, 2024, 5.0 Strike Short Put and 7.5 Strike Long Put
 Short Put (Expiration: August 16, 2024, Strike: 5.0)
 Delta: 0.186
 Premium: $0.55
 Profit: $0.55
The mediumterm strategy involves the same strike prices but with a longer expiration date. This setup provides more time for the stock to move. The short put's higher premium increases the profitability, but the delta suggests lower initial risk of assignment. The longer term also allows more flexibility if the market fluctuates.
3. LongTerm Strategy: November 15, 2024, 2.5 Strike Short Put and 5.0 Strike Long Put
 Short Put (Expiration: November 15, 2024, Strike: 2.5)
 Delta: 0.029
 Premium: $0.14
 Profit: $0.14
 Long Put (Expiration: November 15, 2024, Strike: 5.0)
 Delta: 0.029
 Premium: $0.6
 Profit: $0.6
For a longer investment horizon, the combination of a short $2.5 strike put and a long $5.0 strike put limits risk if the underlying asset experiences a significant downturn. The low delta values minimize the immediate risk of assignment. The potential profit here is driven more by the premium difference and the protective nature of the higher strike long put.
4. NearTerm Strategy: June 21, 2024, 2.5 Strike Short Put and 7.5 Strike Long Put
 Short Put (Expiration: June 21, 2024, Strike: 2.5)
 Delta: 0.106
 Premium: $0.05
 Profit: $0.05
This option combination focuses on a lower premium and delta, reducing immediate risk but offering a smaller potential reward. The 2.5 strike price ensures that the assignment risk is mitigated, while the long position at a higher strike offers protection against significant price decreases.
5. Intermediate Strategy: November 15, 2024, 5.0 Strike Short Put and 2.5 Strike Long Put
 Short Put (Expiration: November 15, 2024, Strike: 5.0)
 Delta: 0.029
 Premium: $0.6
 Profit: $0.6
An inverse approach, using a higher strike for the short put and a lower strike for the long put with the same expiration, could be considered for a scenario where a gradual decline is anticipated. The lower premium is compensated by a significant increase in ROI if the stock hovers around the mid$2.5 strike, offering an optimal balance between risk and reward.
Given these choices, the most profitable and balanced strategy hinges on the specific investor's risk tolerance and market outlook. The aforementioned combinations encompass strategies with varying timelines and risk profiles, providing multiple opportunities to capitalize on anticipated bearish movements in USAU stock.
Vertical Bull Put Spread Option Strategy
When analyzing the vertical bull put spread options strategy for U.S. Gold Corp. (USAU), the primary goal is to find a strategy that will be profitable while minimizing the risk of having shares assigned before expiration. Considering the target stock price range (2% over or under the current price), we can explore a variety of options with different expiration dates and strike prices. Here is a detailed analysis based on the Greeks and the potential profitability of the options presented:
NearTerm Choice (27 Days to Expiration: June 21, 2024)
Short Put: Strike 2.5  Delta: 0.1061  Gamma: 0.0578  Premium: 0.05  Return on Investment (ROI): 100%  Profit: 0.05
Long Put: Strike 7.5  Delta: 0.5703  Gamma: 0.0112  Premium: 1.5  ROI: 0.0219  Profit: 0.0328
By selling the short put at 2.5 and buying the long put at 7.5, you collect a net premium, though the long put is significantly expensive and reduces ROI. With a delta close to zero for the short put, the risk of assignment is low if the stock stays around the current price.
NearTerm Choice (27 Days to Expiration: June 21, 2024)
Short Put: Strike 5.0  Delta: 0.5365  Gamma: 0.0563  Premium: 0.3  ROI: 100%  Profit: 0.3
Long Put: Strike 7.5  Delta: 0.5703  Gamma: 0.0112  Premium: 1.5  ROI: 0.0219  Profit: 0.0328
Selling the short put at a strike of 5.0 with such a high delta increases the risk of assignment, as its more inthemoney. The collected premium is higher, but caution is needed due to the greater likelihood of assignment.
MidTerm Choice (83 Days to Expiration: August 16, 2024)
Short Put: Strike 5.0  Delta: 0.1865  Gamma: 0.00001  Premium: 0.55  ROI: 100%  Profit: 0.55
Choose a long put at a higher strike (not provided here).
The delta of 0.1865 suggests moderate risk for assignment. The premium collected is sizable (0.55), and with the low gamma, price sensitivity is limited. This middleground strategy provides a balanced riskreward ratio.
LongTerm Choice (174 Days to Expiration: November 15, 2024)
Short Put: Strike 2.5  Delta: 0.0296  Gamma: 0.00002  Premium: 0.14  ROI: 100%  Profit: 0.14
Long Put: Strike 5.0  Delta: 0.0296  Gamma: negligible  Premium: 0.6  ROI: 100%  Profit: 0.6
The long duration of these options reduces the theta decay, and both options have minimal delta, significantly reducing the risk of assignment. The premium collected is more moderate for the short put but larger for the long put, giving better overall profitability without undue risk of early exercise.
Summary of Scenarios
 Nearterm (27 days, strike 2.5): Low risk due to a low delta (0.05 profit).
 Nearterm (27 days, strike 5.0): Relatively higher risk of assignment due to a higher delta (0.3 profit).
 Midterm (83 days, strike 5.0): Balanced risk with a moderate premium (0.55 profit).
 Longterm (174 days, strike 2.5): Low delta, low assignment risk, moderate premium (0.14 profit).
 Longterm (174 days, strike 5.0): Balanced for the longdated horizon, with moderate but safe returns (0.6 profit).
In conclusion, based on overall profitability with minimal assignment risk, the midterm and longterm choices with either moderate deltas or longer durations (lower theta) provide the best balance. If immediate profits are critical with higher tolerance for risk, the 27day short put at the strike of 5.0 offers a high premium but at higher assignment risk.
Vertical Bear Call Spread Option Strategy
Implementing a profitable vertical bear call spread strategy for U.S. Gold Corp (USAU) involves trading two call options: selling a short call option at a lower strike price and buying a long call option at a higher strike price with the same expiration date. The goal is to profit from a declining stock price by collecting premiums, with the key consideration being managing assignment risk. Given a stock price target within 2% either side of the current stock price, and taking into account "the Greeks," let's evaluate five potential strategies based on their profitability, risk, and expiration dates.
1. NearTerm Strategy: June 21, 2024 Expiration
Option Pair:
 Short Call: Strike $2.5, Premium $3.38, Delta 0.5733
 Long Call: Strike $5.0, Premium $0.8, Delta 0.0279
Profitability:
By entering this vertical spread, the maximum potential profit is the net premium received minus the cost of buying the long call:
[ \text{Net Premium} = 3.38  0.8 = \$2.58 ]
Considering 100 contracts:
[ \text{Max Profit} = \$2.58 \times 100 = \$258 ]
Risk:
The risk stems from the difference between the strikes minus the net premium:
[ \text{Max Loss} = (\$5.0  \$2.5)  \$2.58 = \$2.42 ]
So, the total risk per spread is:
[ \text{Max Loss} = \$2.42 \times 100 = \$242 ]
2. NearTerm Strategy: July 19, 2024 Expiration
Option Pair:
 Short Call: Strike $2.5, Premium $3.26, Delta 0.0646
 Long Call: Strike $5.0, Premium $1.05, Delta 0.0007
Profitability:
Here, the net premium is:
[ \text{Net Premium} = 3.26  1.05 = \$2.21 ]
Maximum potential profit:
[ \text{Max Profit} = \$2.21 \times 100 = \$221 ]
Risk:
The risk calculation remains:
[ \text{Max Loss} = (\$5.0  \$2.5)  \$2.21 = \$2.79 ]
Total risk per spread:
[ \text{Max Loss} = \$2.79 \times 100 = \$279 ]
3. MidTerm Strategy: August 16, 2024 Expiration
Option Pair:
 Short Call: Strike $2.5, Premium $3.26, Delta 0.0646
 Long Call: Strike $7.5, Premium $0.4, Delta 0.0006
Profitability:
The net premium is significantly higher:
[ \text{Net Premium} = 3.26  0.4 = \$2.86 ]
Maximum potential profit:
[ \text{Max Profit} = \$2.86 \times 100 = \$286 ]
Risk:
[ \text{Max Loss} = (\$7.5  \$2.5)  \$2.86 = \$2.64 ]
Total risk:
[ \text{Max Loss} = \$2.64 \times 100 = \$264 ]
4. LongTerm Strategy: November 15, 2024 Expiration
Option Pair:
 Short Call: Strike $2.5, Premium $3.5, Delta 0.0016
 Long Call: Strike $5.0, Premium $1.2, Delta 0
Profitability:
Net premium:
[ \text{Net Premium} = 3.5  1.2 = \$2.3 ]
Maximum potential profit:
[ \text{Max Profit} = \$2.3 \times 100 = \$230 ]
Risk:
[ \text{Max Loss} = (\$5.0  \$2.5)  \$2.3 = \$2.7 ]
Total risk:
[ \text{Max Loss} = \$2.7 \times 100 = \$270 ]
5. LongTerm Strategy: November 15, 2024 Expiration
Option Pair:
 Short Call: Strike $5.0, Premium $1.2, Delta 0
 Long Call: Strike $7.5, Premium $0.5, Delta 0.0000
Profitability:
Net premium:
[ \text{Net Premium} = 1.2  0.5 = \$0.7 ]
Maximum potential profit:
[ \text{Max Profit} = \$0.7 \times 100 = \$70 ]
Risk:
[ \text{Max Loss} = (\$7.5  \$5.0)  \$0.7 = \$1.8 ]
Total risk:
[ \text{Max Loss} = \$1.8 \times 100 = \$180 ]
Conclusion
Most Profitable:
The midterm strategy with the August 16, 2024 expiration offers a notable balance between profitability and risk. Here:
[ \text{Net Profit} = \$2.86 \times 100 = \$286 ]
[ \text{Max Risk} = \$2.64 \times 100 = \$264 ]
Risk Management:
Choosing options with higher strike prices out of the money, such as the November 15, 2024 expiration with strikes of $5.0 and $7.5, minimizes assignment risk but also offers limited profit:
[ \text{Net Profit} = \$0.7 \times 100 = \$70 ]
[ \text{Max Risk} = \$1.8 \times 100 = \$180 ]
Investors can decide based on personal risk tolerance and capital allocation preferences. The higher profit margins slightly increase risks, but the potential reward justifies the choice within a welldiversified portfolio approach.
Vertical Bull Call Spread Option Strategy
When analyzing vertical bull call spreads for U.S. Gold Corp. (USAU), the goal is to capitalize on anticipated moderate increases in the stock price while controlling risk, especially the risk of having shares assigned prematurely due to being in the money. Given the target stock price is 2% over or under the current stock price, we'll select spreads that balance profitability with acceptable risk.
NearTerm Choices:
 June 21, 2024, Expiration (27 Days to Expire)

Strike Price 2.5:
 Short Call: $3.38 premium, Delta: 0.5733, Vega: 0.0245, Theta: 0.0673, Risk of Assignment: Medium (Delta > 0.5 implies higher inthemoney probability)
 Long Call: $3.38 premium, Delta: 0.5733, Vega: 0.0245, Theta: 0.0673
 Risk and Reward: This strike may risk assignment due to the Delta value, but if the price moves moderately higher, this can be quite profitable. Potential profit would be limited due to the narrow spread.

June 21, 2024, Expiration (27 Days to Expire)
 Strike Price 5.0:
 Short Call: $0.80 premium, Delta: 0.0279, Vega: 0.0922, Theta: 0.0019, Risk of Assignment: Low (Delta close to 0 implies low inthemoney probability)
 Long Call: $0.80 premium, Delta: 0.0279, Vega: 0.0922, Theta: 0.0019
 Risk and Reward: Less risk of early assignment due to low Delta. If the stock price moves up 2%, this could yield a higher ROI, albeit with lower absolute premiums.
MediumTerm Choices:
 August 16, 2024, Expiration (83 Days to Expire)

Strike Price 2.5:
 Short Call: $3.26 premium, Delta: 0.0646, Vega: 0.1920, Theta: 0.0053, Risk of Assignment: Medium to Low
 Long Call: $3.26 premium, Delta: 0.0646, Vega: 0.1920, Theta: 0.0053
 Risk and Reward: Lesser risk than the nearterm 2.5strike option due to the lower Delta. If the stock increases modestly, this spread can become very profitable.

August 16, 2024, Expiration (83 Days to Expire)
 Strike Price 5.0:
 Short Call: $0.90 premium, Delta: close to 0, Vega: very low, Theta: very low, Risk of Assignment: Extremely low
 Long Call: $0.90 premium, Delta: close to 0, Vega: very low, Theta: very low
 Risk and Reward: This spread has a low premium but excellent ROI. It is safer regarding assignment and suitable for a small but reliable return if the stock climbs modestly.
LongTerm Choices:
 November 15, 2024, Expiration (174 Days to Expire)
 Strike Price 5.0:
 Short Call: $1.20 premium, Delta: 0, Vega: very low, Theta: very low, Risk of Assignment: Extremely low
 Long Call: $1.20 premium, Delta: 0, Vega: very low, Theta: very low
 Risk and Reward: Longterm options offer time value and security against assignment due to the Delta of zero. The ROI is attractive, and risk remains very low.
Conclusion:
When selecting a bull call spread strategy, it is crucial to balance potential profitability with the risk of assignment. The spreads involving strike prices of 5.0 for the nearterm and mediumterm expiration dates are particularly attractive due to their low Delta, reducing the risk of assignment. The longterm options provide the added benefit of time decay working in favor of the position, providing an ample time frame for the stock price to make a favorable move. Thus, a diversified approach, employing both nearterm and longerterm strategies, would be prudent for capturing maximum profitability while minimizing the assignment risk.
Spread Option Strategy
Analyzing the options chain for U.S. Gold Corp. (USAU) and considering both "the Greeks" and expiration dates, we can determine the most profitable calendar spread strategy. In this case, we are interested in creating a spread by buying a call option and selling a put option.
The primary goal is to optimize profitability while minimizing the risk of having shares assigned. We've focused on options that align with the target stock price range, which we expect to fluctuate within 2% of the current price. Here's an analysis of the five most profitable calendar spread strategies based on the available data:
1. ShortTerm Strategy (27 days until expiration):
 Long Call Option: Strike Price $5.0, Expiration Date June 21, 2024
 Premium: 0.80
 Roi: 0.209005
 Profit: 0.167204

Greeks: Delta 0.0279, Gamma 0.0455, Vega 0.0922, Theta 0.0019, Rho 0.0001

Short Put Option: Strike Price $2.5, Expiration Date June 21, 2024
 Premium: 0.05
 Roi: 100.0
 Profit: 0.05
 Greeks: Delta 0.1061, Gamma 0.0578, Vega 0.2445, Theta 0.0200, Rho 0.0006
By combining these options, we aim to achieve a profitable spread with a low delta and moderate Vega to minimize volatility risks. With a high ROI on both options, this strategy offers strong profitability. The short put at a $2.5 strike price carries a minimal assignment risk due to its low delta and low premium.
2. MediumTerm Strategy (83 days until expiration):
 Long Call Option: Strike Price $2.5, Expiration Date August 16, 2024
 Premium: 3.26
 Roi: 0.063559
 Profit: 0.207204

Greeks: Delta 0.0646, Gamma 0.0125, Vega 0.1920, Theta 0.0053, Rho 0.0005

Short Put Option: Strike Price $5.0, Expiration Date August 16, 2024
 Premium: 0.55
 Roi: 100.0
 Profit: 0.55
 Greeks: Delta 0.1865, Gamma 0.0000, Vega 0.0001, Theta 0.0215, Rho 0.0113
This combination provides higher profitability due to the long call option, which benefits from lower delta and higher vega. The short put with $5.0 strike ensures higher premium with moderate assignment risk due to its delta and longer expiration window.
3. LongTerm Strategy (174 days until expiration):
 Long Call Option: Strike Price $2.5, Expiration Date August 16, 2024
 Premium: 3.26
 Roi: 0.063559
 Profit: 0.207204

Greeks: Delta 0.0646, Gamma 0.0125, Vega 0.1920, Theta 0.0053, Rho 0.0005

Short Put Option: Strike Price $2.5, Expiration Date November 15, 2024
 Premium: 0.14
 Roi: 100.0
 Profit: 0.14
 Greeks: Delta 0.0296, Gamma 0.0000, Vega 0.0003, Theta 0.0032, Rho 0.0233
Here, the long call option remains consistent to leverage its profitability, while the longterm short put minimizes assignment risk due to its low delta and higher premium.
4. MediumTerm Alternative (83 days until expiration):
 Long Call Option: Strike Price $5.0, Expiration Date August 16, 2024
 Premium: 0.90
 Roi: 0.074671
 Profit: 0.067204

Greeks: Delta 0.0000, Gamma 0.0000, Vega 0.00001, Theta 0.0000, Rho 0.0000

Short Put Option: Strike Price $5.0, Expiration Date June 21, 2024
 Premium: 0.30
 Roi: 100.0
 Profit: 0.30
 Greeks: Delta 0.5365, Gamma 0.0563, Vega 0.1285, Theta 0.0651, Rho 0.0035
This combination helps mitigate volatility with low vega long calls while optimizing premium from short puts.
5. LongTerm Alternative (174 days until expiration):
 Long Call Option: Strike Price $2.5, Expiration Date June 21, 2024
 Premium: 3.38
 Roi: 0.0258
 Profit: 0.087204

Greeks: Delta 0.5733, Gamma 0.0194, Vega 0.0245, Theta 0.0673, Rho 0.0018

Short Put Option: Strike Price $5.0, Expiration Date November 15, 2024
 Premium: 0.60
 Roi: 100.0
 Profit: 0.60
 Greeks: Delta 0.0296, Gamma 0.0000, Vega 0.00001, Theta 0.0029, Rho 0.0233
For a long horizon, this setup offers higher stability and minimal risk while ensuring maximum profitability from the premium gained.
Risk and Reward Analysis
The main risk in these strategies is the potential assignment of shares, particularly the short put options. However, by selecting options with low delta values, we minimize this risk. The profit for long call options comes mainly from the anticipated price movement within the neartarget range. Vega plays a crucial role in amplifying the return in volatile markets, while theta erosion is managed through mid to longterm positions.
The reward across these strategies varies, with shortterm strategies providing immediate returns but higher risks and longerterm strategies offering stability and continuous profitability. The selected options aim to balance these aspects for optimal overall returns.
Calendar Spread Option Strategy #1
Let's begin by defining a calendar spread, which typically involves buying and selling options with the same strike price but different expiration dates. However, you have specified a strategy where I will buy a put option (long position) for one expiration date and sell a call option (short position) at a different expiration date. This divergence from the standard approach may increase complexity and risk, but can still be analyzed for profitability opportunities.
Choice 1: NearTerm Strategy
 Long Put Option: Expiry 20240621, Strike Price 7.5, Premium $1.5
 Greeks: Delta 0.5703, Theta 0.0674, Vega 0.0352, Gamma 0.0112, Rho 0.0055
 ROI: 0.021864, Profit: 0.032796
 Short Call Option: Expiry 20240621, Strike Price 5.0, Premium $0.8
 Greeks: Delta 0.0279, Theta 0.0019, Vega 0.0922, Gamma 0.0455, Rho 0.0001
 ROI: 8.3505, Profit: 0.066804
Analysis:
Here, we have an excellent ROI on the short call side, particularly the next expiration in June. The long put at $7.5 minimizes our exposure to price fluctuations due to a higher delta compared to the call. This is beneficial as it keeps the position from becoming too sensitive to changes in the stock price. This setup also significantly minimizes the risk of assignment because the strikes are far apart ($5 and $7.5), reducing the likelihood of the stock hitting the $5 strike price at expiration.
Choice 2: MidTerm Strategy
 Long Put Option: Expiry 20240621, Strike Price 7.5, Premium $1.5
 Greeks: Delta 0.5703, Theta 0.0674, Vega 0.0352, Gamma 0.0112, Rho 0.0055
 ROI: 0.021864, Profit: 0.032796
 Short Call Option: Expiry 20240719, Strike Price 5.0, Premium $1.05
 Greeks: Delta 0.0008, Theta 0.0004, Vega 0.0053, Gamma 0.0013, Rho 0.0000061
 ROI: 30.1718, Profit: 0.316804
Analysis:
This option choice provides a good mix of mediumterm security and profit potential. The call premium is higher compared to the nearterm strategy, thus increasing the potential profit. The delta values for both strategies remain relatively low, reducing the risk of assignments. The larger time decay (Theta) value of the put option helps make this strategy profitable if the stock hovers close to the current price.
Choice 3: LongTerm Strategy
 Long Put Option: Expiry 20240621, Strike Price 7.5, Premium $1.5
 Greeks: Delta 0.5703, Theta 0.0674, Vega 0.0352, Gamma 0.0112, Rho 0.0055
 ROI: 0.021864, Profit: 0.032796
 Short Call Option: Expiry 20241115, Strike Price 5.0, Premium $1.2
 Greeks: Delta 0.0000, Theta 0.0000, Vega 0.0000, Gamma 0.0000, Rho 0.0000
 ROI: 38.9003, Profit: 0.466804
Analysis:
For a longterm strategy, the profit margins are significantly enhanced due to the high ROI on the short call of 38.90%. This expiration date is set in November, which means the short call option has considerable value derived from time decay (Theta). Given the negligible delta of the call, the risk of being assigned is minimal. This becomes a highly attractive trade for those willing to hold onto positions long term for higher potential profit margins while minimizing assignment risk.
Choice 4: Very LongTerm with High Profit Potential
 Long Put Option: Expiry 20240621, Strike Price 7.5, Premium $1.5
 Greeks: Delta 0.5703, Theta 0.0674, Vega 0.0352, Gamma 0.0112, Rho 0.0055
 ROI: 0.021864, Profit: 0.032796
 Short Call Option: Expiry 20241115, Strike Price 7.5, Premium $0.5
 Greeks: Delta 3.6909e19, Theta 2.0448e20, Vega 1.2795e17, Gamma 1.2547e18, Rho 9.8053e21
 ROI: 100.0, Profit: 0.5
Analysis:
This choice leverages a high strike price of $7.5 for the short call, bringing in a guaranteed ROI of 100%, translating into riskfree profit added to our total if the call option remains unexercised. Paired with the long put expiring six months earlier, this limits the risk window to be an extremely low delta and thus negligible risk of assignment through the period. High profitability is combined with longterm security.
Choice 5: Balanced Near Term to Mid Term Strategy
 Long Put Option: Expiry 20240621, Strike Price 7.5, Premium $1.5
 Greeks: Delta 0.5703, Theta 0.0674, Vega 0.0352, Gamma 0.0112, Rho 0.0055
 ROI: 0.021864, Profit: 0.032796
 Short Call Option: Expiry 20240816, Strike Price 7.5, Premium $0.4
 Greeks: Delta 0.0006, Theta 0.00003, Vega 0.0053, Gamma 0.0005, Rho 0.0000071
 ROI: 100.0, Profit: 0.4
Analysis:
In this strategy, the shorter term from nearterm to midterm secures the premium value with efficiency. The 100% ROI on the short call option with a fairly balanced delta greatly lessens the concerns connecting with being forced to sell shares below market expectation. The expiry dates are close enough to hedge balances effectively, harnessing both the benefits of significant Theta on the long put while protecting significant call time premiums.
Conclusion:
The key to a profitable calendar spread in this scenario is arranging balancing act options on lower sensitivity (Delta) and achieving maximum ROI without risking assignments. The most advantageous strategies appear to involve longterm ROI strengths while keeping practical assessment over the Greeks. If in adherence to maintaining control and inclusion of broad time periods, choices with precise spread timing can amplify earning areas within safe contingencies in calendar premiums and realistic market reactive plays.
By favoring these choices based on given data, the specifics focus is on prudently combining the highly efficient, riskminimal trades with the maximized upside potential from Kalman filtered execution of Greeks in market scope trades.
Calendar Spread Option Strategy #2
Analyzing Calendar Spread Options Strategies for U.S. Gold Corp. (USAU)
In creating a calendar spread for U.S. Gold Corp. (USAU), we seek to optimize profitability while minimizing risk. Because a calendar spread involves selling a put option and buying a call option with different expiration dates, its crucial to analyze the options chain for an optimal riskreward balance. Below, well focus on five different combinations based on their Greeks and financial viability, covering nearterm to longterm periods.
Choice 1: NearTerm Strategy
 Sell Put Option: Strike 7.5, expiration 20240621
 Greek Values: Delta (0.5703), Gamma (0.0112), Vega (0.0352), Theta (0.0674), Rho (0.0055)
 Premium: 1.5
 ROI: 0.021864

Profit: 0.032796

Buy Call Option: Strike 2.5, expiration 20240621
 Greek Values: Delta (0.5733), Gamma (0.0194), Vega (0.0245), Theta (0.0673), Rho (0.0018)
 Premium: 3.38
 ROI: 4.3433136095
 Profit: 0.146804
Risk and Reward Analysis
Risk: The delta of the put option suggests a moderate probability of the option being in the money, presenting a moderate risk of having shares assigned. The theta and vega values indicate higher sensitivity to time decay and volatility respectively. Reward: Given the ROI and profit figures, this combination offers a quick return, though the modest profit potential might turn some investors away.
Choice 2: MediumTerm Strategy
 Sell Put Option: Strike 7.5, expiration 20240719
 Greek Values: Delta (0.0000076), Gamma (0.0000175), Vega (0.0000743), Theta (0.00000034), Rho (0.0000000627)
 Premium: 0.45
 ROI: 100.0

Profit: 0.45

Buy Call Option: Strike 2.5, expiration 20240816
 Greek Values: Delta (0.0646), Gamma (0.0125), Vega (0.1920), Theta (0.0053), Rho (0.0005)
 Premium: 3.26
 ROI: 0.822208589
 Profit: 0.026804
Risk and Reward Analysis
Risk: The nearly zero delta value of the put option suggests minimal risk of it being in the money. Theta and vega values imply its less sensitive to both time decay and volatility. Reward: This strategy provides a higher ROI and higher profit due to the low premium of the call option and the minimal sensitivity of the put's Greeks.
Choice 3: Intermediate Strategy
 Sell Put Option: Strike 7.5, expiration 20240816
 Greek Values: Delta (0.0006352), Gamma (0.0005155), Vega (0.0053), Theta (0.0000320), Rho (0.0000071)
 Premium: 0.4
 ROI: 100.0

Profit: 0.4

Buy Call Option: Strike 5.0, expiration 20240719
 Greek Values: Delta (0.000751), Gamma (0.0012683), Vega (0.00534), Theta (0.0000488), Rho (0.0000061)
 Premium: 1.05
 ROI: 30.1718095238
 Profit: 0.316804
Risk and Reward Analysis
Risk: Lowrisk with minimal delta value reduces the chance of shares being assigned. The stable theta and vega values also indicate a low impact from time decay and volatility. Reward: This combination provides an excellent ROI while ensuring limited exposure to risk, balancing both profitability and security.
Choice 4: LongTerm Strategy
 Sell Put Option: Strike 7.5, expiration 20241115
 Greek Values: Delta (3.6904834e19), Gamma (1.254718949e18), Vega (1.279460523e17), Theta (2.044846313e20), Rho (9.805342203e21)
 Premium: 0.5
 ROI: 100.0

Profit: 0.5

Buy Call Option: Strike 2.5, expiration 20240816
 Greek Values: Delta (0.0646), Gamma (0.0125), Vega (0.1920), Theta (0.0053), Rho (0.0005)
 Premium: 3.26
 ROI: 0.822208589
 Profit: 0.026804
Risk and Reward Analysis
Risk: The exceedingly small delta of the put option implies almost zero risk of it being in the money. Relatively stable values for other Greeks further mitigate risks associated with time and volatility. Reward: Despite low shortterm ROI, the longer expiration date allows for significant profit accumulation potential over time with low risk.
Choice 5: Very LongTerm Strategy
 Sell Put Option: Strike 5.0, expiration 20241115
 Greek Values: Delta (0.0), Gamma (0.0), Vega (0.0), Theta (0.0), Rho (8.890911294e16)
 Premium: 1.2
 ROI: 38.9003333333

Profit: 0.466804

Buy Call Option: Strike 7.5, expiration 20240816
 Greek Values: Delta (0.0006352), Gamma (0.0005155), Vega (0.0053), Theta (0.0000320), Rho (0.0000071)
 Premium: 0.4
 ROI: 100.0
 Profit: 0.4
Risk and Reward Analysis
Risk: The zero delta on the put option eliminates the risk of having shares assigned, whereas balanced Greeks signify low risk from time and volatility decay. Reward: Offers a moderate ROI with high profitability, promising a secure yet lucrative investment over an extended period.
Conclusion
Balancing risk and reward across different expiration dates, the above strategies offer a diversified approach to calendar spread options trading. The nearterm options provide quicker returns, while medium to very longterm options assure reduced risk with potentially higher profits. By selecting an optimal combination (Choice 3 or Choice 5), traders can achieve maximum profitability with minimal risk of assignment.
Similar Companies in Gold:
Labrador Gold Corp. (NKOSF), Aurion Resources Ltd. (AIRRF), Puma Exploration Inc. (PUMXF), Golden Star Resources Corp (GLNS), Sokoman Minerals Corp. (SICNF), Dakota Gold Corp. (DC), Paramount Gold Nevada Corp. (PZG), Vista Gold Corp. (VGZ), Almaden Minerals Ltd. (AAU), Osino Resources Corp. (OSIIF), Orezone Gold Corporation (ORZCF), Rio2 Limited (RIOFF), Norsemont Mining Inc. (NRRSF), Newmont Corporation (NEM), Barrick Gold Corporation (GOLD), Agnico Eagle Mines Limited (AEM), Kinross Gold Corporation (KGC), Hecla Mining Company (HL), Royal Gold, Inc. (RGLD), Coeur Mining, Inc. (CDE), Harmony Gold Mining Company Limited (HMY), Sibanye Stillwater Limited (SBSW), Yamana Gold Inc. (AUY)
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