New Options Available for Sea Ltd. (SE): A Closer Look at Potential Strategies

Investors looking at Sea Ltd (Symbol: SE) were presented with new options today, featuring expiration in April 2025. With 120 days until expiration, these new contracts may provide an opportunity for options sellers to receive higher premiums compared to those with shorter expiration times. Using our YieldBoost formula, Stock Options Channel has identified noteworthy put and call contracts among the new April 2025 options.

Analyzing the $110 Put Option

The put contract at a $110.00 strike price currently has a bid of $9.15. If an investor sells this put option, they commit to buying the stock at $110.00 but will receive the premium, which lowers the effective purchase cost to $100.85 (excluding broker commissions). For those interested in buying shares of SE, this strategy could be appealing compared to the current share price of $114.48.

This $110.00 strike price offers about a 4% discount to the stock’s current trading price, meaning there’s a chance the put could expire worthless. Analyzing current data suggests there is a 63% probability of such an occurrence. Stock Options Channel will monitor these odds over time, providing updates on our website. If the contract does expire worthless, the premium would yield an 8.32% return on the cash commitment, or an impressive 25.31% annualized—a figure we term as YieldBoost.

Spotlight on the $120 Call Option

On the call side, the $120.00 strike option commands a current bid of $10.45. Should an investor buy SE shares at $114.48 and sell this covered call, they would agree to sell shares at $120.00. Including the premium collected, this strategy could result in a total return of 13.95% if the shares are called away at expiration in April 2025 (before broker commissions). However, investors should be cautious as significant price gains for SE could result in missed opportunities.

Like the put option, the $120.00 strike represents around a 5% premium to the stock’s current price, so there’s a possibility the call could expire worthless. Current data points to a 49% chance of this happening. Stock Options Channel will continue monitoring these statistics, and if the covered call does not get exercised, the premium would add a 9.13% return, equating to 27.77% annualized—another example of YieldBoost.

Understanding Volatility

The put contract reflects an implied volatility of 49%, while the call option shows an implied volatility of 48%. In contrast, we calculate the trailing twelve-month volatility, based on the last 251 trading days and the current price of $114.48, to be 39%. For additional ideas on put and call options contracts, visit StockOptionsChannel.com.

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