Today, a new chapter unfolds in the world of Netflix Inc (NFLX) as investors delve into the possibilities presented by the May 24th expiration options. Strategic Opportunities
Within the intricate options chain, a put contract at the $630.00 strike price catches the eye, boasting a bid of $32.60. By venturing to sell-to-open this put contract, investors embrace the chance to buy the stock at $630.00, all while pocketing the premium to set their cost basis at $597.40 (excluding broker commissions). For those eyeing NFLX shares, this could be a compelling alternate course compared to today’s $634.15/share price.
Diving into the Details
Given that the $630.00 strike sits at a minor 1% discount to the current stock price, defining it as out-of-the-money by that margin, the possibility emerges that the put contract may expire valueless. The current analytical data, encompassing greeks and implied greeks, hint at a 57% chance of such an event. Stock Options Channel will closely monitor these odds over time, reflecting fluctuations in a numerical chart available on our website.
Should the put contract face a futile end, the premium secured offers a 5.17% return on the cash investment, equivalent to a robust 37.77% annualized gain, a concept affectionately dubbed the YieldBoost around here.
Entering the thrilling realm of call options, a call contract at the $640.00 strike comes into focus, boasting a bid of $36.20. Imagine this – an investor acquires NFLX shares at the present $634.15/share price and then sells-to-open this call contract as a “covered call,” pledging to offload the stock at $640.00. In this scenario, the call seller not only captures the premium but also potentially sees a complete return of 6.63% (excluding dividends, if applicable) if the stock transitions at the May 24th expiration, barring broker commissions.
The Call to Action
Exploring the engaging narratives of historical data and business fundamentals profoundly shapes this decision. The $640.00 strike, representing a minimal 1% premium to the present trading price, looms as out-of-the-money by that amount, bearing the chance that the covered call contract could vanish into the void, leaving the investor with both shares and the gathered premium.
The current data hint at a 48% likelihood of this scenario. Our website offers intricate details on this contract, complete with real-time odds tracking and a visual representation of these figures over time, encapsulating the trading history of the option contract. Should the covered call contract meet the same fate, the premium sweetens the deal, delivering a 5.71% supplementary return, or a tantalizing 41.67% on an annualized basis – rechristened as the YieldBoost for your delight.
Delving into the Volatility Realm
The implied volatility of both the put and call contracts stands poised around 41%. As the current 12-month trailing volatility is pegged at 35%, calculating the actualities of the last 250 trading days adds zest to the analytical blend.
For more captivating insights and thought-provoking ideas on put and call options contracts, we invite you to traverse the intriguing landscape of StockOptionsChannel.com.