Options traders attentive to Nucor Corp. (Symbol: NUE) witnessed the unveiling of new options today, set to expire on October 18th. With 246 days remaining until expiration, the fresh contracts bear the potential to offer sellers of puts or calls a higher premium than nearer expiration contracts, backed by the benchmark of time value. This development sets the stage for a critical juncture in the options market and opens the door to a realm of strategic opportunities for astute investors.
Stock Options Channel’s savvy YieldBoost formula has meticulously scoured the NUE options chain for these newly available October 18th contracts. An enticing put and a call contract have emerged on the horizon, boasting particular intrigue for options aficionados looking to seize the moment.
At the $185.00 strike price, the put contract sparkles with a current bid of $13.35. A prospective seller, opting to open this put contract, impels themselves to procure the stock at $185.00, whilst reaping the rewards of the premium. This dials down the cost basis of the shares to a tantalizing $171.65, elevating it as an alluring alternative for an investor eyeing NUE shares, setting the backdrop for informed decision-making and calculated risk-taking. The $185.00 strike, positioned at an approximate 1% discount to the prevailing trading price, offers a prospective glimpse into the prospect of the put contract expiring worthless, with the current data suggesting a staggering 99% likelihood of such an outcome. The perennial observations of Stock Options Channel will keep tabs on these odds, capturing the evolving mien through published data, showcased on our website’s contract detail page. The potential fruition of an expired worthless contract would transmute the premium into a dazzling 7.22% return on the cash commitment, or a resplendent 10.71% annualized return – a phenomenon espoused by Stock Options Channel as the illustrious YieldBoost.
On the calls side, the illustrious call contract residing at the $190.00 strike price has prompted a current bid of $16.65. Should an investor delve into purchasing NUE shares at the prevailing price and proceed to materialize a “covered call” by selling-to-open this call contract, they anchor themselves to vend the stock at $190.00, intertwined with the bounty of the premium. This strategic course illumines the potential for a total return, sans dividends, of a commendable 10.75% if the stock is summoned away upon the October 18th expiration. However, the underlying conundrum is imminent – a galore of potential upside left on the table if NUE shares reach for the stars. Here, perusing Nucor Corp.’s trailing twelve month trading history and delving into the bedrock of business fundamentals becomes paramount. Glance upon the very same chart; NUE’s $190.00 strike shimmering in red, spotlighted within its trading history, encapsulating the possibility of promising prospects juxtaposed against prudent risk assessment.
Another glance toward the eminent $190.00 strike unveils an approximate 2% premium to the current trading price, characterizing its “out-of-the-money” status. The faint possibility of the covered call contract expiring worthless emerges, with the ongoing analytical data pointing at an astonishing 99% probability of such an occurrence. In line with our commitment, Stock Options Channel plans to scrutinize this probability, tracing its metamorphosis through published charts to glisten on our contract detail page. In the event of an expired worthless covered call contract, the premium engenders an 8.92% supplementary return for the investor, or a formidable 13.24% annualized yield – a feat that is celebrated as the illustrious YieldBoost.
The current trailing twelve month volatility, in light of the final 251 trading day closing values and today’s price of $186.59, has been honed to 30%. For a myriad of exemplary put and call options contract ideas warranting discernment, a sojourn to StockOptionsChannel.com beckons.
Let the pursuit unwrapping the crests of the S&P 500 ensue, resonating with the pulse of the marketplace.
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- Institutional Holders of GFI
- Institutional Holders of LIVX
- EWZ market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
