New Options Available for Amazon Investors: A Closer Look
Exploring December 13th Options: Put and Call Contracts of Interest
Investors in Amazon.com Inc (Symbol: AMZN) have new options available today with a December 13th expiration date. Stock Options Channel has analyzed the AMZN options chain and identified two contracts worth consideration—one put and one call.
Insights on the $185.00 Put Contract
The put contract with a strike price of $185.00 currently has a bid of $7.75. If an investor sells-to-open this put, they agree to buy the stock at $185.00 while collecting the premium, effectively lowering their cost basis to $177.25 (before broker commissions). This could be an appealing alternative for anyone looking to buy AMZN shares, as the current market price is $187.56 per share.
This $185.00 strike represents about a 1% discount to the current trading price, meaning there is a chance the put contract may expire worthless. Present analytical data indicate a 59% likelihood of this occurring. Stock Options Channel will continue to monitor these chances over time and provide updates on our website, including a chart reflecting these odds. If the contract does expire worthless, the premium would yield a 4.19% return on the cash commitment, which annualizes to 35.52%—an approach we label as YieldBoost.
Analyzing the Call Contract at $190.00
Shifting focus to call options, the contract with a $190.00 strike price currently bids at $8.05. If an investor buys AMZN shares at today’s price of $187.56 and sells-to-open this call contract, they would commit to selling the stock at $190.00. By including the premium collected, this could lead to a total return of 5.59%, excluding dividends, if the stock is called away by the December 13th expiration (again, before broker commissions).
However, significant upside potential could be missed if AMZN shares rise substantially. Therefore, it’s crucial to review AMZN’s historical trading data and core business fundamentals when making decisions. Below is a chart showcasing AMZN’s trailing twelve-month trading history, with the $190.00 strike highlighted in red:
The Odds of Expiration for Covered Calls
The $190.00 strike is approximately 1% above the current trading price, leading to the possibility that this covered call could expire worthless. Should that happen, the investor retains both their shares and the collected premium. Current data indicate a 50% chance of this outcome. Stock Options Channel will track and display these probabilities on our website over time, including the trading history for this option contract. If the call does expire worthless, the premium would add a 4.29% extra return for the investor, or 36.40% annually—again, referred to as YieldBoost.
The implied volatility for the put contract stands at 39%, while the call contract’s implied volatility is at 35%. In comparison, the actual trailing twelve-month volatility, based on the last 251 trading day closes and today’s price of $187.56, is 26%. To explore additional put and call options contract ideas, visit StockOptionsChannel.com.
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Also see:
- JCP Price Target
- CAH Shares Outstanding History
- KOR Market Cap History
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
