New Options Trading for AGNC Investment Corp: Key Highlights

Investors in AGNC Investment Corp (Symbol: AGNC) noticed the introduction of new options trading today for contracts expiring on July 18th. According to options data from Stock Options Channel, a notable put contract has caught our attention.

Details on the $8.00 Put Contract

The put contract at the $8.00 strike price currently has a bid of 6 cents. If an investor sells to open this put contract, they commit to buying the stock at $8.00. In doing so, they will collect the premium, which reduces the effective cost basis to $7.94 per share, excluding broker commissions. For those already considering a purchase of AGNC shares at the current price of $8.95, this offers a compelling alternative.

Market Position and Potential Outcomes

The $8.00 strike price presents an 11% discount to AGNC’s current trading price, placing it out-of-the-money by the same percentage. At present, analytical data suggests there is a 51% chance that this put contract could expire worthless. Stock Options Channel plans to monitor these odds and will publish updated figures over time, providing insights into their trajectory. Should the contract indeed expire worthless, the premium would yield a 0.75% return based on the cash commitment, or an annualized yield of 4.28%, referred to as YieldBoost.

Trading History and Volatility

The chart below illustrates AGNC Investment Corp’s trading history over the past twelve months, highlighting in green the position of the $8.00 strike:

In terms of volatility, the implied volatility for this put contract stands at 25%. However, we calculate the actual trailing twelve-month volatility—considering the last 250 trading days along with today’s price of $8.95—to be 22%.

For additional options contract ideas, including both puts and calls, visit Stock Options Channel.

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