Fascination with Ford’s Options Chain
Investors in Ford Motor Co. (Symbol: F) woke up to a play of possibilities today, as new options debuted for the November 22nd expiry. The team at Stock Options Channel delved into the F options chain, sniffing out a put and call contract worth a second look.
The tantalizing put option beckons at the $10.00 strike price with a fetch of 41 cents. Should an investor choose to sell-to-open this put contract, they would agree to buy the stock at $10.00. However, sweetening the deal, they’d also pocket the premium, reducing the share’s cost basis to $9.59 (before any meddling broker fees). For those eyeing F shares, this move could be akin to snagging a discount at a Black Friday sale.
Expedition Through Options Terrain
Venturing through the captivating landscape of Ford’s calls, lo and behold, a call contract awaits at the $10.50 strike price, commanding a bid of 55 cents. Picture this – an investor acquires F shares at the current price of $10.43/share and then niftily sells-to-open that call contract as a “covered call,” pledging to sell the stock at $10.50. With the collected premium in hand, this maneuver could yield a rewarding 5.94% return if the stock gallops away at the November 22nd curtain fall.
In a brisk about-face, let’s consider the $10.50 strike resting as a modest 1% premium above the current trading price of the stock – an out-of-the-money possibility at play. Imagine the covered call contract slipping off the ledge of value, leaving the investor with both their shares intact and the premium pocketed deliciously. The current data tip us off to a 49% likelihood of this outcome, underlying the dynamic nature of options adventure.
Diving Deeper into Analytical Waters
The unspoken volatility buzzes vibrantly in both put and call corners, hovering around 41%. Intertwined in this dance is the trailing twelve month volatility, standing firm at 39%, painting a nuanced picture of the stock tapestry. For astute option explorers seeking further inspiration, a visit to StockOptionsChannel.com could potentially unveil a treasure trove of ideas waiting to be unearthed.
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The perspectives and insights you’ve encountered here reflect the author’s personal perspective and do not necessarily mirror the stance of Nasdaq, Inc.
