New Options Available for PHINIA Inc: Insights for Investors

Investors in PHINIA Inc (Symbol: PHIN) can explore new options expiring on April 17th. Stock Options Channel has scrutinized the options chain and found notable contracts worth considering.

Put Option Insights

The put contract at the $47.50 strike price has a current bid of 55 cents. If an investor sells to open this put contract, they agree to buy the stock at $47.50 and will earn the premium, reducing their effective cost basis to $46.95 (excluding broker fees). For those intending to invest in PHIN, this option can be appealing as it offers a lower entry point than the current stock price of $49.69 per share.

With the $47.50 strike being about a 4% discount from the current price, it is possible that the put contract might expire worthless. Current analytics show a 63% chance of this happening. Stock Options Channel plans to monitor these odds over time, providing updates on our website as they evolve. Should the contract expire without value, the premium equates to a 1.16% return on the cash invested, translating to a 6.82% annual return — referred to as the YieldBoost.

Call Option Overview

On the call side of the options chain, a contract at the $52.50 strike price is currently bid at 60 cents. If an investor buys PHIN shares at the current price of $49.69 and sells to open this call contract, they commit to selling at $52.50. This strategy could yield a total return of 6.86% (before any broker fees) if the stock is called away by the April 17th expiration. However, there’s a possibility of missing out on further gains should the stock price rise significantly. Thus, examining both the historical trading data and the company’s fundamentals is essential.

A chart highlighting the trailing twelve months of trading history for PHINIA Inc reveals where the $52.50 strike price sits in context.

The $52.50 strike is approximately 6% higher than the current trading price, indicating it is out-of-the-money by that same percentage. If the covered call expires worthless, the investor retains the shares and the collected premium. There is a 61% probability of this scenario occurring. Stock Options Channel will keep track of these probabilities and share the evolving data on our website. If the covered call does not result in a sale, the premium represents a 1.21% additional return, equivalent to a 7.11% annualized return, also known as the YieldBoost.

Volatility and Market Context

The implied volatility for the put contract is pegged at 41%, while for the call contract, it stands at 39%. In comparing this to the actual trailing twelve-month volatility—calculated from the past 250 days’ closing prices along with today’s $49.69—this sits at 35%. For further ideas on other put and call options worth considering, visit StockOptionsChannel.com.

Explore Top YieldBoost Calls for Stocks Engaging in Buybacks »

Also see:

• DGII Split History
• CARR Historical PE Ratio
• BEST Average Annual Return

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