New Options Offer Exciting Opportunities for Gaming & Leisure Properties Investors
Fresh Trading Contracts Can Enhance Returns
Investors focused on Gaming & Leisure Properties, Inc (Symbol: GLPI) have new options available for trading this week, expiring in July 2025. These new contracts offer a unique opportunity for option sellers, given their longer time frame of 240 days until expiration. Investors can potentially earn higher premiums compared to contracts with nearer expiration dates. Stock Options Channel has analyzed the GLPI options chain and pinpointed two contracts of significant interest – one put and one call.
The put contract at the $45.00 strike price is currently bidding at $1.00. If an investor sells this put contract, they agree to buy shares at $45.00 while collecting the premium. This effectively lowers their cost to $44.00 per share (excluding broker commissions). For those considering an investment in GLPI, this route could be appealing compared to the current share price of $50.58.
Notably, the $45.00 strike price is about an 11% discount from the current stock price, meaning the option is out-of-the-money by that percentage. There’s a 73% chance that this put contract could expire worthless, according to the latest analytical data, which includes greeks and implied greeks. Over time, Stock Options Channel will continue to monitor these odds and provide updates on their website. If the contract does expire worthless, the premium would yield a 2.22% return on the cash commitment, translating to 3.38% annualized. This is what we refer to as the YieldBoost.
Below is a chart that displays the trailing twelve-month trading history for Gaming & Leisure Properties, Inc, with the $45.00 strike price highlighted in green:
Calls Offer Potential for Strong Returns
On the calls side of the options chain, a call contract is available at the $52.50 strike price, currently bidding at $1.40. If an investor buys GLPI shares at the current price of $50.58 and sells that call contract as a “covered call,” they would agree to sell the stock at $52.50. When the premium is added in, this could lead to a total return of 6.56% (excluding dividends) if the stock is called away by the July 2025 expiration, before broker commissions. However, if GLPI shares substantially increase, the investor might miss out on possible gains, underlining the importance of evaluating both past trading history and business fundamentals. Below is a chart illustrating GLPI’s trailing twelve-month trading history, with the $52.50 strike marked in red:
The $52.50 strike price is about a 4% premium over the current stock price, indicating it is also out-of-the-money by that percentage. There’s a 58% chance that this covered call contract could expire worthless, allowing the investor to keep both the shares and the premium collected. Analytical data will be tracked to observe how these odds evolve, with updates provided on our website. If the covered call contract expires worthless, the premium would represent a 2.77% additional return, or 4.21% annualized, defined by our YieldBoost.
The implied volatility for the put contract is 25%, while the call contract suggests an implied volatility of 21%. Our calculations indicate an actual trailing twelve-month volatility of 18%, based on the last 251 trading days and today’s price of $50.58. For further insights into put and call options contract ideas, visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
