Investors engaged in Murphy Oil Corp (Symbol: MUR) witnessed the commencement of trading in novel options on November 15th. As per Stock Options Channel analysts, the YieldBoost methodology scoured through the MUR options chain for fresh November 15th contracts, unveiling a put contract of notable intrigue.
A Strategic Put Contract
The put contract at the $35.00 strike price currently boasts a bid of $1.40. By opting to sell-to-open this put contract, investors commit to acquiring the stock at $35.00, augmenting their position by collecting the premium. This meticulous maneuver effectively reduces the cost basis of the shares to $33.60 (pre-broker commissions). For an investor eyeing MUR shares, this approach may present a compelling alternative to the present $35.88/share rate.
Essentially, the $35.00 strike price denotes a roughly 2% markdown from the stock’s prevailing trading price, signifying an out-of-the-money placement by that margin. Consequently, there exists a likelihood that the put contract will lapse futile. Presented data, encompassing greeks and implied greeks, indicate existing odds of this outcome standing at 59%. Stock Options Channel will meticulously monitor these probabilities and chronicle their evolution over time, showcasing a chart of these figures on our platform under the contract detail page for this specific venture.
Historical Perspective
An illustration denoting the twelve-month trading history of Murphy Oil Corp is depicted below. The $35.00 strike is distinctly highlighted in green, offering a palpable juxtaposition with said historical performance.
The put contract example elucidated earlier entails an implied volatility rate of 50%. Conversely, the factual trailing twelve-month volatility (encompassing the latest 251 closing values of trading days alongside the present $35.88 price) stands at 27%. To explore additional put and call options contract insights, a visit to StockOptionsChannel.com is recommended.
Further Analyses:
Stocks Crossing Below Their 200 Day Moving Average
DRII Insider Buying
ANY shares outstanding history