New Trading Options for Block Inc Present Opportunities for Investors

Investors in Block Inc (Symbol: XYZ) are now able to access new options expiring on July 18th. These contracts present an opportunity for options sellers to secure a higher premium due to the 79 days until expiration. The time value plays a significant role in setting the price that buyers are willing to pay. At Stock Options Channel, our YieldBoost formula has analyzed the XYZ options chain and identified noteworthy put and call contracts.

Put Contract Insights

The put contract at a $55.00 strike price carries a current bid of $2.94. If an investor chooses to sell-to-open this put contract, they commit to purchasing the Stock at $55.00, additionally collecting the premium. This action adjusts the effective cost basis of the shares to $52.06 (pre-commissions). Investors interested in acquiring shares of XYZ may find this strategy appealing compared to the current market price of $57.08/share.

This $55.00 strike price indicates approximately a 4% discount from the current trading price, making it out-of-the-money. Current analytical data suggest that the probability of the put contract expiring worthless is about 61%. Stock Options Channel will monitor these odds over time, tracking changes and publishing the data on our website under the contract detail page. Should the contract expire worthless, it would yield a 5.35% return on the cash commitment, or 24.70% annualized, referred to as YieldBoost.

Call Contract Insights

On the calls side, the contract at the $60.00 strike price has a current bid of $3.25. An investor purchasing shares of XYZ at the current price of $57.08/share and subsequently selling the call contract as a “covered call” must commit to selling the Stock at $60.00. With the premium included, this could result in a total return of 10.81% by July 18th (excluding dividends and commissions) if the Stock is called away. However, substantial upside may exist if XYZ shares appreciate significantly, emphasizing the importance of reviewing both the trading history and business fundamentals.

Below is a chart displaying XYZ’s trailing twelve-month trading history, with the $60.00 strike highlighted in red:

The $60.00 strike price represents an approximate 5% premium over the current trading price, indicating it is also out-of-the-money. The likelihood of the covered call expiring worthless is around 52%. Should this occur, the investor would retain both their shares and the collected premium. If the call expires worthless, the premium would contribute to an additional 5.69% return, or 26.31% annualized, also labeled as YieldBoost.

The put contract’s implied volatility stands at 53%, while the call contract’s implied volatility is at 57%. The actual trailing twelve-month volatility, based on the last 250 trading days and the current price of $57.08, is calculated to be 50%. For more potential put and call options worth exploring, consider visiting StockOptionsChannel.com.

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also see:

• Yield Charts
• AGO Options Chain
• Institutional Holders of SECD

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