Buyers in Comcast Corp (Image: CMCSA) noticed new choices start buying and selling immediately, for the November twenty second expiration. At Stock Options Channel, our YieldBoost formulation has seemed up and down the CMCSA choices chain for the brand new November twenty second contracts and recognized the next put contract of specific curiosity.
The put contract on the $40.00 strike worth has a present bid of $1.08. If an investor was to sell-to-open that put contract, they’re committing to buy the inventory at $40.00, however can even accumulate the premium, placing the fee foundation of the shares at $38.92 (earlier than dealer commissions). To an investor already serious about buying shares of CMCSA, that would signify a horny different to paying $40.73/share immediately.
As a result of the $40.00 strike represents an approximate 2% low cost to the present buying and selling worth of the inventory (in different phrases it’s out-of-the-money by that proportion), there’s additionally the likelihood that the put contract would expire nugatory. The present analytical information (together with greeks and implied greeks) counsel the present odds of that occuring are 58%. Inventory Choices Channel will monitor these odds over time to see how they modify, publishing a chart of these numbers on our web site below the contract detail page for this contract. Ought to the contract expire nugatory, the premium would signify a 2.70% return on the money dedication, or 19.69% annualized — at Inventory Choices Channel we name this the YieldBoost.
Under is a chart displaying the trailing twelve month buying and selling historical past for Comcast Corp, and highlighting in inexperienced the place the $40.00 strike is positioned relative to that historical past:
The implied volatility within the put contract instance above is 28%.
In the meantime, we calculate the precise trailing twelve month volatility (contemplating the final 251 buying and selling day closing values in addition to immediately’s worth of $40.73) to be 23%. For extra put and name choices contract concepts price taking a look at, go to StockOptionsChannel.com.
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Additionally see:
BLMN Average Annual Return
Institutional Holders of ONVO
GGE Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
