New AMETEK Inc Options Trading Opportunities Emerge for December 19th
Investors in AMETEK Inc (Symbol: AME) are seeing new options trade today, set to expire on December 19th. With 249 days remaining until expiration, these freshly traded contracts may provide sellers of puts or calls an opportunity to earn a higher premium compared to contracts with shorter terms. Our YieldBoost formula at Stock Options Channel has analyzed the AME options chain and identified one put and one call contract that stand out.
Notable Put Contract Insights
The put contract at the $160.00 strike price shows a current bid of $11.80. If an investor decides to sell-to-open this put contract, they agree to purchase the stock at $160.00 while also collecting the premium. This arrangement effectively reduces the cost basis of shares to $148.20 (before broker commissions). For investors keen on buying AME shares, this option could be a more attractive route than paying the current trading price of $160.87 per share.
Since the $160.00 strike price represents approximately a 1% discount to the current stock price, there is a possibility that the put contract might expire worthless. Current analysis, including greeks and implied greeks, suggests a 59% chance of this outcome. Over time, Stock Options Channel will monitor these odds and make them available on our website, featuring a chart tracking these figures. If the contract does expire worthless, the premium would yield a 7.38% return on the cash commitment, or 10.81% annualized—a figure we refer to as YieldBoost.
AMETEK Inc Trading History
Below is a chart displaying AMETEK Inc’s trailing twelve-month trading history, highlighting where the $160.00 strike price sits in relation to this history:
Exploring Call Contract Opportunities
Turning to the call side of the option chain, a call contract at the $165.00 strike price currently bids at $12.70. For an investor purchasing shares of AME at the current price of $160.87, selling-to-open this call contract as a covered call means agreeing to sell the stock at $165.00. Collecting the premium would result in a total return of 10.46% if the stock is called away by the December 19th expiration (not including any dividends or broker commissions).
However, if AME shares rise significantly, the potential for upside could be diminished, making it essential to examine both AMETEK Inc’s trading history and business fundamentals. Below is a chart of AME’s trailing twelve-month trading history, with the $165.00 strike highlighted:
The $165.00 strike price reflects about a 3% premium to the current stock trading price, making it out-of-the-money by that percentage. Consequently, the covered call contract also carries the risk of expiring worthless, allowing the investor to retain both their shares and the premium. Current analytical data shows a 46% chance of this happening. Stock Options Channel will observe these odds over time and display the trading history of the option contract on our website. If the covered call expires worthless, the premium will represent an extra return of 7.89%, or 11.57% annualized, which is also termed YieldBoost.
Volatility and Market Context
The implied volatility for the put contract is at 30%, while the call contract is at 28%. By contrast, the trailing twelve-month volatility, based on the last 250 trading days and today’s price of $160.87, stands at 25%. For a selection of additional put and call options contract ideas, you can visit StockOptionsChannel.com.
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also see:
- BBW Insider Buying
- ORLY Options Chain
- NCRA Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
