Exploring Options Strategies for May 10th

Today marked the inception of new options for investors in Netflix Inc (Symbol: NFLX) with the May 10th expiration. Delving into the NFLX options chain, a put and call contract gained attention.

Potential Put Play at $600.00 Strike

A put contract at the $600.00 strike price unveiled a current bid of $27.35, enticing investors with the possibility of acquiring shares at a discounted price of $600.00. This theoretical acquisition cost of $572.65 reveals a strategy to own NFLX shares at an enticing rate.

Given the 1% markdown from the current stock price, there exists a 57% likelihood that the put contract may expire without value. Stock Options Channel’s analytics will monitor these odds, offering a graphic representation over time.

Expiring worthless would yield a 4.56% return on the cash commitment, equivalent to an annualized return of 38.69%—dubbed the YieldBoost by Stock Options Channel.

Intriguing Call Opportunity at $620.00 Strike

On the calls side, the $620.00 strike call contract presented a bid of $28.05, providing a scenario where investors who purchase NFLX shares at $603.18/share could exploit a covered call strategy.

If shares get called away at $620.00 by the May 10th expiration, the total return could reach 7.44%. However, the possibility of missing out on further upside necessitates a deep dive into Netflix Inc’s trading history and business fundamentals. A chart illustrating this history and the $620.00 strike can aid in decision-making.

Considering a 3% premium to the current stock price, there stands a 52% chance that the covered call contract could expire fruitlessly. Stock Options Channel will meticulously track these odds and publish relevant data for investors.

If the contract goes unexercised, the premium equates to a 4.65% added return to the investor, indicating a potential 39.47% annualized BoostYield.

Market Insights and Volatility Notes

Both put and call contract examples showcase an implied volatility of around 41%. In contrast, the actual trailing twelve-month volatility registers at 35%, adding a layer of market context for investors to contemplate.

For further exploration of put and call options contracts, StockOptionsChannel.com houses a plethora of valuable ideas for investors’ consideration.

Top YieldBoost Calls of the Nasdaq 100 »

Check Out:

• Cheap Undervalued Stocks
• CPLG Insider Buying
• DSWL Videos