Opportunities Aplenty in Ford Motor Co.
On April 12th, investors delved into the realm of options for Ford Motor Co. (F), with intriguing new avenues unveiling themselves. Stock Options Channel unearthed a put and a call contract that captured particular attention.
Putting a $12.00 Strike in Focus
Intrigue surrounds the put contract at the $12.00 strike price, sporting a bid of 24 cents. for potential buyers, the allure lies in the opportunity to purchase stock at $12.00, coupled with collecting the premium. Interestingly, this drive of the cost basis down to $11.76 is notably below the current trading price of $12.41, marking a 3% slash. This out-of-the-money position positions the contract in a hopeful 99% chance of expiring worthless, reflecting a 2.00% return on the cash commitment or a 16.99% annualized return.
Visualizing the Path
Illustrating the twelve-month trading history, a visual representation highlights the $12.00 strike, showcasing its relation to past endeavors.
Exploring the Call Realm
Shifting focus to calls, the $12.50 strike call contract emerges with a 46 cents bid, enticing investors. By partaking in a covered call strategy—selling the stock at $12.50—the potential return reaches 4.43%, based on the stock getting called away before the April 12th expiration. The covered call stands out as a 1% premium above the current stock price, transcending a 99% likelihood of expiring worthless. This captures a 3.71% extra return to the investor, equivalent to a 31.49% annualized boost.
Insightful Analytics
Analyzing the actual trailing twelve-month volatility caps at 34%, adding another layer of dimension to the options outlook. For more enthralling options insights, a visit to StockOptionsChannel.com is worth the detour.
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