Russ Cohen

Exploring Mondelez International Inc’s MDLZ Put And Call Options for May 31st

Options Unveiled for Investors

Today, a fresh set of options emerged in the world of Mondelez International Inc (Symbol: MDLZ), captivating investors eyeing the May 31st expiration. Stock Options Channel presents its YieldBoost formula, which meticulously scoured through the MDLZ options chain, singling out a put and a call contract that stand out from the rest.

Intriguing Put Option Details

One of the options of interest is the put contract set at the $58.00 strike price, flaunting a current bid of 5 cents. Should an investor opt to sell-to-open this put contract, they commit to acquiring the stock at $58.00 while pocketing the premium. This move slashes the cost basis of the shares to $57.95, offering a hole-in-one opportunity for investors keen on adding MDLZ shares to their portfolio.

A Gleam of Hope

The $58.00 strike provides a 13% markdown from the current stock price, indicating that the put contract stands out of the money by this margin. The analytical data hints at an 82% chance of the put contract expiring worthless. Stock Options Channel will monitor these odds closely, showcasing the fluctuations over time and furnishing a detailed chart on its website. If the contract fizzles out, the premium spells out a meager but not negligible return, an enticing 0.09% or 0.63% annualized YieldBoost.

Visualizing Trading History

An illustrative chart paints the picture of Mondelez International Inc’s last twelve months of trading, accentuating where the $58.00 strike resides in connection to historical data.

Loading chart — 2024 TickerTech.com

Conjuring Call Option Insights

Shifting focus to the calls front, another intriguing option emerges at the $69.00 strike with a 10 cents bid. By purchasing MDLZ shares at the present rate of $66.58 and entering a “covered call” via sell-to-open, investors commit to selling the stock at $69.00. This guarantees a wholesome return (excluding dividends) of 3.78% should the stock be called away at the May 31st termination.

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Eyeing Future Gains

The $69.00 strike sits at a 4% premium to the current stock price, revealing its out-of-the-money essence. Data suggests a 63% likelihood of the covered call contract meeting its demise futilely. Stock Options Channel will meticulously track these odds, providing a comprehensive chart showcasing the contract’s trading history. If the covered call ends worthlessly, the premium extends an extra 0.15% return to the investor, amounting to 1.10% annualized, termed as the YieldBoost.

Comparing Volatility

The put option shows 46% implied volatility, while the call option stands at 22%. Notably, the actual trailing twelve-month volatility, based on the last 251 trading days and today’s price of $66.58, calculates to 17%. For more intriguing put and call options, a visit to StockOptionsChannel.com promises value.

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