HomeMost PopularALB Options Play Unveils Potential Upside for Investors

ALB Options Play Unveils Potential Upside for Investors

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New Opportunities Unfold

Albemarle Corp. shareholders witnessed the dawn of new options on May 17th, offering potential pathways for strategic plays in the market. Stock Options Channel has conducted a comprehensive analysis, homing in on intriguing put and call options that could captivate investor interest.

The Put Play

A put contract at the $120.00 strike point beckons with a bid of $7.90. By selling-to-open this contract, investors commit to acquiring the stock at $120.00 while pocketing the premium, thereby setting the cost basis at $112.10. For those eyeing ALB shares, this emerges as a compelling alternative to the current market price of $121.03.

Calculating the Odds

With a 1% discount to the stock’s current trading value, the put contract stands out as slightly out-of-the-money. Initial data indicates a 58% probability of an expiring worthless scenario. Stock Options Channel will vigilantly monitor these chances, tracking and charting fluctuations over time. Should the contract lapse unexercised, the premium equates to a 6.58% return on the cash obligation, or a tantalizing 37.55% annualized rate.

Eyeing the Call Option

Conversely, the call contract at the $180.00 strike lures with a bid of 47 cents. By executing a covered call strategy, investors agree to vend the stock at $180.00, post purchasing ALB shares at the present $121.03 rate. This tactic could yield a rewarding 49.11% total return if the stock is called away at the option’s expiration.

Unleashing Potential

Although the covered call approach endows a safety net, safeguarding both the shares and premiums in case of an untriggered contract, the fingerprint of alluring risk remains. Analytical data indicate a high 90% likelihood of expiry without exercise. This outcome would secure an additional 0.39% return to investors, amounting to a 2.21% annualized gain, duly christened as the YieldBoost.

Evaluating Volatility

The put contract features an implied volatility of 54%, while the call contract boasts a higher figure at 64%. In contrast, the trailing twelve-month volatility, resting at 53%, reflects a broader market context. For an array of engaging put and call options, explorers are encouraged to visit StockOptionsChannel.com for further insights.

nslideshowTop YieldBoost Calls of Stocks with Recent Secondaries Β»

Also see:

Β• Funds Holding RJZ
Β• BCRH Videos
Β• KYMR market cap history

The musings expressed herein are not mere ruminations but the ponderings of the author, shedding light on the rollercoaster world of stock options play.

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