Investors Eye October 18th Put And Call Options: CUZ Investors Eye October 18th Put And Call Options: CUZ

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As the financial market teems with ebbs and flows, investors in Cousins Properties Inc (Symbol: CUZ) find themselves at a crossroads as new options for the October 18th expiration flood the arena. The time value, a prime determinant of option prices, is poised to play a crucial role with 246 days remaining until expiration. This presents potential opportunities for sellers of puts or calls to realize higher premiums than those available for contracts with a closer expiration. At this juncture, our YieldBoost formula has delved into the CUZ options chain for the new October 18th contracts and pinpointed one put and one call contract bearing particular interest.

Lucrative Prospects: The Put Contract

Beginning with the put contract at the $15.00 strike price, the current bid stands at 10 cents. Should an investor opt to sell-to-open that put contract, they would be committing to purchase the stock at $15.00, while concurrently collecting the premium. This strategic move would establish the cost basis of the shares at $14.90 (before broker commissions). This alternative might appear significantly more appealing to investors eyeing CUZ shares, considering the stark contrast to the present $23.30/share valuation.

Given that the $15.00 strike coincides with an approximate 36% discount to the current trading price of the stock, the out-of-the-money paradigm looms large. Consequently, there exists the prospect that the put contract may expire valueless. Current analytical data, encompassing greeks and implied greeks, indicate a 99% probability of this outcome. Stock Options Channel pledges to track these odds over time and publish a comprehensive chart on our website under the contract detail page for this contract. If the contract does indeed expire worthless, the premium would yield a handsome 0.67% return on the cash commitment, equivalent to a 0.99% annualized return—an eventuality we refer to as the YieldBoost.

In laid out in the chart below, the trailing twelve month trading history for Cousins Properties Inc delineates the $15.00 strike’s positioning relative to historical data, marked by a vivid shade of green:

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Enticing Propositions: The Call Contract

Shifting focus to the calls side of the option chain, the call contract at the $25.00 strike price boasts a current bid of 10 cents. For an investor acquiring shares of CUZ stock at the existing price level of $23.30/share, and then subsequently selling-to-open that call contract as a “covered call,” they commit to sell the stock at $25.00. This maneuver, accompanied by the collection of premium, would precipitate a total return of 7.73% if the stock is called away at the October 18th expiration (accounting for broker commissions). However, caution is advised as significant potential upside could remain untapped if CUZ shares witness a meteoric surge, underscoring the importance of appraising Cousins Properties Inc’s trailing twelve month trading history and business fundamentals.

The $25.00 strike represents an approximate 7% premium to the prevailing trading price of the stock, signifying that it is out-of-the-money by that percentage. Consequently, there lingers the possibility that the covered call contract may expire worthless, granting the investor possession of both their shares of stock and the premium amassed. Current analytical data points to a 99% likelihood of this occurrence. Stock Options Channel is committed to monitoring these odds over time and publishing an illustrative chart of those numbers on our website. Should the covered call contract expire valueless, the premium would translate to a 0.43% boost in extra return for the investor, or 0.64% annualized—termed by us as the YieldBoost.

Meanwhile, the actual trailing twelve month volatility is calculated to be 37%, taking into account the last 251 trading day closing values along with the prevailing price of $23.30. For additional put and call options contract insights, discerning investors are urged to 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.

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