Upon perusing the market landscape today, investors beckoning Ford Motor Co.’s symbol “F” discovered intriguing new options arriving at the forefront, destined to expire on November 22nd. The adept eyes of the YieldBoost formula at Stock Options Channel delved into the F options realm for these nascent November 22nd contracts, unveiling a solitary put and call contract that beckon attention.
Intriguing Put Contract at $10.00 Strike Price
Hovering at a current bid of 41 cents, the put perched at the $10.00 strike price urges an investor to ponder a unique proposition. By opting to sell-to-open this put contract, one commits to procuring the stock at $10.00, while simultaneously snaring the premium, effectively shrouding the cost basis of the shares at $9.59. An appealing prospect, especially when juxtaposed against the current share price of $10.43, beckoning the potential for a 4% discount.
A Furtive Call Contract at $10.50 Strike Price
The call counterpart, nestled at the $10.50 strike price and boasting a 55-cent bid, presents a contrasting narrative. Should an investor secure F stock at the prevailing price point of $10.43 per share, partaking in a “covered call” expedition by vowing to vend the stock at $10.50 with the collection of the premium might yield a total return of 5.94% if the stock dons its call-away attire at the November 22nd termination (barring broker commissions).
Surveying the strategic landscape further, one unearths the fact that the $10.50 strike wields an approximate 1% premium over the ongoing stock price. This revelation portends the potential that the covered call contract may bear no fruit, leaving the investor ensconced with both their stock shares and the precious premium gathered. Data-driven insights proffer a 49% likelihood of this scenario unfolding, emboldening the investor with a 5.27% supplemental return via the premium or a 38.46% annualized yield enhancement — christened fondly as the YieldBoost.
Zooming into Volatility Insights
Unveiling the implied volatility bedecking both put and call scenarios at approximately 41%, the stage is set for a riveting volatility tale. Meanwhile, traversing the realms of reality, the actual trailing twelve-month volatility, considering the finales of the last 251 trading days alongside today’s price of $10.43, stands resolute at 39% — a figure shrouded in clairvoyance and anticipation.
Bolster your arsenal of investment cognition by exploring additional put and call options contract conjectures deemed worthy of exploration over at StockOptionsChannel.com — where possibilities abound like stars in the night sky, ready to be deciphered by the discerning investor.
