Options Trading Alert: EQT Corp Offers Exciting December Opportunities

Today, new options were introduced for EQT Corp (Symbol: EQT), expiring on December 6th. Using Stock Options Channel’s YieldBoost formula, we identified a noteworthy call contract within this options chain.

Focused on the $37.00 Strike Call

The call contract priced at $37.00 is currently bid at $1.15. If an investor buys shares of EQT at the present price of $36.19 per share and then sells this call contract as a covered call, they commit to sell the stock at $37.00. This strategy offers a potential total return of 5.42%, excluding any dividend payments, if the stock price reaches the strike price at expiration (before considering broker commissions). However, if EQT shares significantly rise, this strategy may cap potential profit, highlighting the importance of analyzing EQT’s past trading performance and business fundamentals.

Below is a chart displaying EQT’s trading history over the past twelve months, with the $37.00 strike price marked in red:

Market Context and Expiration Outlook

The $37.00 strike price represents an approximate 2% premium to the stock’s current trading price, indicating that it is out-of-the-money by that percentage. There’s a chance the covered call could expire worthless, allowing the investor to keep both their shares and the premium received. Current analysis suggests there is a 53% probability of this outcome. Our website will monitor these odds over time and provide updates on the trading history of this option contract.

If the covered call expires worthless, the collected premium would translate to a 3.18% increase in returns for the investor, equating to an impressive 26.95% annualized return, synonymous with our YieldBoost measure.

Volatility Insights

The call contract mentioned has an implied volatility of 33%. In contrast, the trailing twelve months’ actual volatility, calculated from the last 251 trading days and the current price of $36.19, stands at 31%. For more options trading ideas—including both put and call options—visit StockOptionsChannel.com.

Explore Top YieldBoost Calls of the S&P 500 »

Additional Resources:

• Top Stocks Held By Ray Dalio
• MXWL Market Cap History
• LEGR Average Annual Return

The views and opinions expressed herein are those of the author and do not necessarily represent the views of Nasdaq, Inc.