Today, investors in Ford Motor Co. (Symbol: F) were presented with new options for the November 22nd expiration date. Amidst the finicky dance of the stock market, one put and one call option have piqued the interest of many observers.
Lucrative Put Option Insight
A put contract at the $10.00 strike price offers a compelling bid of 41 cents. Selling this contract commits an investor to stock purchase at $10.00 while capitalizing on the earned premium, strategically setting the cost basis of the shares at $9.59 (prior to broker fees). For those eyeing F shares, this offers a tantalizing alternative to the current $10.43/share rate.
The $10.00 strike sits at an enticing 4% markdown from the present share price, positioning it as an out-of-the-money selection by that margin. Statistically, there is a 63% likelihood of this put contract expiring fruitlessly. Monitoring these odds over time, Stock Options Channel vows to illustrate fluctuations through a dedicated chart on their platform. A squandered contract spells a 4.10% cash commitment return, or a 29.91% annualized yield – what they famously dub as the YieldBoost.
Invigorating Call Option Analysis
On the flip side, a call contract at the $10.50 strike price presents a bid of 55 cents. Purchasing F shares at the existing $10.43/share rate, followed by a covered call methodology at $10.50, ventures the stock’s sale at said price. This calculated move promises a total return of 5.94% (excluding dividends) if shares are claimed by the November 22nd cutoff (ahead of broker charges).
Despite the charm of this approach, forsaking substantial profit remains a risk if F stocks surge skyward. Underlining the one-percent premium disparity between the $10.50 strike and the current stock price, the out-of-the-money label persists. Odds indicate a 49% shot at a futile covered call conclusion. Stock Options Channel stands poised to update these probabilities regularly, sharing data visualizations on their platform. Should the covered call route run dry, the premium connotes a 5.27% upturn in return, equivalent to a 38.46% annualized gain – their signature YieldBoost.
Volatility and Insights
Both put and call options display an implied volatility of approximately 41%. In contrast, documented trailing twelve-month volatility, accounting for the prior 251 closing values alongside the current $10.43 cost, stands at 39%. For further enticing put and call option prospects, visit StockOptionsChannel.com.