Symbotic Inc Options Analysis: Potential Opportunities Awaiting Investors
New options for Symbotic Inc (Symbol: SYM) with a December 6th expiration began trading today, enticing investors with possible strategies to maximize their returns.
Evaluating the $28.50 Put Contract
A put contract at the $28.50 strike price is currently bid at $3.00. By selling-to-open this put, an investor agrees to purchase SYM shares at $28.50, receiving the premium and effectively lowering the cost basis to $25.50 (excluding broker commissions). This option presents an interesting alternative for anyone looking to buy shares, instead of paying the current market price of $29.12.
The $28.50 strike is about 2% below the stock’s trading price, meaning there is a chance the put contract could expire worthless. Current estimates suggest a 58% likelihood of this outcome. Stock Options Channel will monitor these odds, providing updates on our website. If the put expires without being exercised, the premium offers a return of 10.53% on the cash commitment, translating to an impressive annualized yield of 89.26%. This concept is referred to as the YieldBoost.
Charting SYM’s Performance
Below is a chart showing the last twelve months of trade data for Symbotic Inc, with the $28.50 strike visually indicated:
Analyzing the $29.50 Call Contract
On the calls side, a contract priced at $29.50 is also drawing interest, currently being bid at $3.00. If an investor buys SYM shares at $29.12 and simultaneously sells a covered call with a $29.50 strike, they commit to selling the stock at $29.50. Including the premium, this could yield a total return of 11.61%, should the stock be called away at the December expiration (again excluding commissions).
However, if SYM shares rise significantly, considerable upside may be forfeited. Therefore, examining the stock’s previous twelve months of performance and its underlying business fundamentals is crucial. The chart below highlights the $29.50 strike against SYM’s recent trading history:
Understanding the Risks of the Covered Call
The $29.50 strike reflects a roughly 1% premium over the current trading price, indicating that there’s a chance the covered call may also expire worthless. This would enable the investor to retain both their shares and the collected premium. Analysts suggest there is a 46% chance of this occurring. Our site will track and update these probabilities, along with the trading history of the option. If the covered call expires worthless, the premium provides an additional 10.30% return to the investor, which annualizes to 87.36% — another instance of our YieldBoost.
Volatility Insights
The implied volatility for the put contract stands at 89%, while the call contract’s implied volatility is at 90%. In comparison, the actual trailing twelve-month volatility, calculated from the last 251 trading days, is at 86%, influenced by today’s price of $29.12. For further insights on put and call options, check StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
