Traders have their magnifying glasses out, combing through the new options for the April 19th expiration for Louisiana-Pacific Corp (LPX). The Stock Options Channel has been hard at work analyzing the LPX options chain, uncovering one put and one call contract that have piqued their interest.

High-Stakes Put Option

The put contract at the $67.50 strike price currently has a bid of $2.45. By selling-to-open this put contract, an investor commits to buying the stock at $67.50, but also pockets the premium, reducing the cost basis of the shares to $65.05—proving to be a tempting alternative to the current share price of $69.42. Should the put contract expire worthless, the premium would represent a 3.63% return on the cash commitment and a 20.71% annualized return. These numbers speak volumes to the discerning investor, especially in the capricious world of stock options.

Optimistic Call Contract

On the other side, the call contract at the $70.00 strike price boasts a bid of $3.30. Selling-to-open this call contract as a “covered call” commits the investor to sell the stock at $70.00, while also reaping the premium. This move could generate a total return of 5.59% if the stock is called away at the April 19th expiration. The potential upside in this scenario is clear, but like a spinning roulette wheel, the risk of letting potential gains slip remains. Yet, the odds are in the investor’s favor, with a 99% chance of the covered call contract expiring worthless, leaving the investor with both their shares and the collected premium.

Volatility Calculations Spark Interest

As the trading community braces itself for what lies ahead, the actual trailing twelve-month volatility is estimated at 36%, adding an extra layer of complexity to the mix. Investors seeking to capitalize on this volatility are strongly urged to peruse more put and call options contract ideas at StockOptionsChannel.com, where the route to financial fortuity awaits.

While the stakes are high, the financial prowess required is not for the faint of heart. Will the LPX options for April 19th expiration prove to be the golden goose for savvy investors, or a mere flutter in the financial wind?

Also see:

• Funds Holding EXD
• ATO Insider Buying
• SEI Split History

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