Buyers in Dana Inc (Image: DAN) noticed new choices turn into accessible right this moment, for the June 2025 expiration. One of many key knowledge factors that goes into the value an possibility purchaser is keen to pay, is the time worth, so with 246 days till expiration the newly accessible contracts symbolize a possible alternative for sellers of places or calls to attain a better premium than can be accessible for the contracts with a better expiration. At Stock Options Channel, our YieldBoost system has seemed up and down the DAN choices chain for the brand new June 2025 contracts and recognized the next put contract of explicit curiosity.
The put contract on the $11.00 strike worth has a present bid of 30 cents. If an investor was to sell-to-open that put contract, they’re committing to buy the inventory at $11.00, however may even accumulate the premium, placing the associated fee foundation of the shares at $10.70 (earlier than dealer commissions). To an investor already fascinated by buying shares of DAN, that might symbolize a gorgeous different to paying $11.29/share right this moment.
As a result of the $11.00 strike represents an approximate 3% low cost to the present buying and selling worth of the inventory (in different phrases it’s out-of-the-money by that share), there may be additionally the chance that the put contract would expire nugatory. The present analytical knowledge (together with greeks and implied greeks) recommend the present odds of that occuring are 59%. Inventory Choices Channel will observe 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 symbolize a 2.73% return on the money dedication, or 4.05% 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 Dana Inc, and highlighting in inexperienced the place the $11.00 strike is situated relative to that historical past:
The implied volatility within the put contract instance above is 41%.
In the meantime, we calculate the precise trailing twelve month volatility (contemplating the final 251 buying and selling day closing values in addition to right this moment’s worth of $11.29) to be 38%. For extra put and name choices contract concepts value taking a look at, go to StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
