Opportunities Unveiled
Investors in Asana Inc (ASAN) witnessed the commencement of trading for new options on May 31st, offering an array of possibilities. Stock Options Channel delved into the ASAN options chain specifically for the fresh May 31st contracts, unveiling one put and one call contract worth scrutiny.
Potential Bargains
The put contract at the $13.00 strike price, with a current bid of 5 cents, presents an intriguing proposition. Selling-to-open this put contract entails committing to purchase the stock at $13.00, while pocketing the premium. This move effectively sets the cost basis of the shares at $12.95, offering a discounted entry point for investors keen on ASAN shares, relative to the present $14.80/share price tag.
Risk and Reward
The $13.00 strike denotes an approximate 12% markdown from the current trading price, signifying an out-of-the-money scenario by that percentage. With odds indicating a 71% chance of the put contract expiring worthless, the return on the cash commitment – known as the YieldBoost – is pegged at 0.38%, equivalent to 2.81% on an annualized basis. Stock Options Channel stands ready to monitor these probabilities over time, offering valuable insights to investors.
Strategic Moves
On the calls side, the $18.00 strike call contract beckons with a current bid of 20 cents. By engaging in a “covered call” strategy, an investor acquiring ASAN shares at the current price level of $14.80/share commits to selling them at $18.00. This move promises a robust total return of 22.97% if the stock gets called away at the May 31st expiration, excluding dividends, and before factoring in broker commissions. However, prudent consideration of ASAN’s trading history and business fundamentals is essential to optimize returns.
Calculating Risks
The $18.00 strike represents an approximate 22% premium to the current trading price, translating to an out-of-the-money scenario. Current odds of 61% point to the covered call contract expiring worthless, allowing the investor to retain both their shares and the premium received. This premium, contributing an extra return of 1.35% and 9.86% annualized, is classified as the YieldBoost. Stock Options Channel stands committed to tracking these odds over time, providing critical market data.
Volatility Insights
Analyses reveal implied volatilities of 104% in the put contract example and 106% in the call contract. In contrast, actual trailing twelve-month volatility, considering both closing values over the last 251 trading days and the current price of $14.80, stands at 59%. For a comprehensive portfolio of put and call options contract ideas, a visit to StockOptionsChannel.com is well warranted.
For a deeper dive into lucrative options plays, check out the top YieldBoost calls of the S&P 500. Additionally, explore other lucrative options via the VVUS Options Chain, scrutinize FIRE Historical Stock Prices, or delve into JPMV shares outstanding history for more insights.
The views and opinions expressed herein reflect the author’s perspective and do not necessarily align with those of Nasdaq, Inc.
