New Options for On Holding AG Offer Attractive Investment Alternatives
Investors in On Holding AG (Symbol: ONON) are now able to explore new options set to expire on May 30th. Our YieldBoost formula at Stock Options Channel has analyzed the ONON options chain and pinpointed one put and one call contract of particular interest.
Put Option Insights
The highlighted put contract is available at a $36.00 strike price with a current bid of 99 cents. By selling-to-open this put contract, an investor commits to buy shares at $36.00 while also collecting the premium, which effectively lowers the cost basis to $35.01 (excluding broker commissions). For those already considering purchasing shares of ONON, this option stands out as a cheaper alternative compared to the current trading price of $42.56 per share.
The $36.00 strike price represents roughly a 15% discount to the current trading price, making it out-of-the-money by that same percentage. There is an estimated 78% chance that this put contract may expire worthless, according to current analytical data, including greeks and implied greeks. We will continuously monitor these odds on our website and provide updates on our contract detail page. Should the option expire worthless, the premium would yield a 2.75% return on the cash commitment, translating to an annualized return of 20.07%. At Stock Options Channel, we refer to this potential return as the YieldBoost.
Below is a chart illustrating the trailing twelve months of trading history for On Holding AG, with the $36.00 strike point emphasized in green:
Call Option Analysis
Turning to the call side, a contract is available at a $44.00 strike price, currently bidding at $2.05. An investor who buys shares of ONON at the current price of $42.56 and sells-to-open this call contract as a “covered call” would commit to selling the stock at $44.00. By including the premium collected, the total return—excluding any dividends—would reach 8.20% if the stock is called away by the May 30th expiration (before broker commissions). However, this strategy may limit potential upside if ONON shares appreciate significantly. Thus, assessing the historical trading performance and business fundamentals becomes crucial.
Below is a chart showing ONON’s trading history over the past twelve months, with the $44.00 strike highlighted in red:
The $44.00 strike price indicates a roughly 3% premium over the current trading price. If the covered call expires worthless, investors keep both their shares and the premium received. The analytics suggest a 50% chance of this scenario occurring. We will also track these probabilities and provide updates along with the historical trading performance of the option on our website. If the covered call expires without being exercised, the investor could see a 4.82% additional return, or an impressive 35.16% annualized yield boost, defined as YieldBoost.
For context, the implied volatility for the put contract is at 75%, while the call contract indicates a 54% implied volatility. In contrast, our analysis calculates the actual twelve-month trailing volatility, based on the last 251 trading days and the current price of $42.56, at 51%. For more options contract insights, visit StockOptionsChannel.com.
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also see:
- CTXR Split History
- ONNN Insider Buying
- Institutional Holders of ISDS
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
