New Triggers in the Options Market
Today marked a significant event for investors in Ford Motor Co. (Symbol: F) with the introduction of new options for the upcoming November 22nd expiration date. The stock options arena, akin to a bustling trading floor, witnessed the emergence of intriguing opportunities.
Putting Price into Perspective
One notable development was the unveiling of a put option at a $10.00 strike price, boasting a bid of 41 cents. For investors willing to consider the option, a strategic move could be on the horizon. Selling this put option not only commits to acquiring the stock at $10.00 but also comes with a premium twist, potentially adjusting the cost basis favorably to $9.59 per share.
Unveiling Upside Potential
With the $10.00 strike standing at a discount of roughly 4% from the current stock price, there arises the prospect of the put option expiring without value. Data analytics provide a glimpse into a 63% chance of such an outcome. As Stock Options Channel keeps a watchful eye on these probabilities, exploring this contract’s journey can yield insights into potential returns.
Visualizing History’s Impact
Accompanying this venture is a historical lens, underscoring the $10.00 strike in Ford Motor Co.’s twelve-month trading narrative. Streaks of green paint the chart where the strike resides, offering a visual narrative that investors can draw upon.
Calling for Consideration
Shifting focus to the calls domain, a call option at a $10.50 strike price seized attention with a 55 cent bid. Initiating a “covered call” strategy postulates a potentially lucrative deal for investors entering at the current stock price level of $10.43 per share.
Navigating Potential Gains
The $10.50 strike, perched at a premium of about 1% over the present trading price, beckons exploration. Analysis signals a 49% chance of the covered call expiring insignificantly. Stock Options Channel continues its vigil, offering a path to monitor and chart this unfolding scenario.
Volatility Tales
In both the put and call examples, implied volatility stands at approximately 41%. Contrastingly, the on-ground trailing twelve-month volatility, pegged at 39%, provides a tangible backdrop against which to consider these options.
For investors seeking further insights on put and call options, heeding StockOptionsChannel.com’s offerings is advised.