New Options Available for CleanSpark Inc; Insights on CLSK

Investors in CleanSpark Inc (Symbol: CLSK) gained access to new options this week, with expiration set for May 16th. Our YieldBoost formula at Stock Options Channel has analyzed the CLSK options chain and highlighted a particular put and call contract worth considering.

Put Contract Details

The put contract is available at a strike price of $6.00, currently with a bid of 55 cents. If an investor sells-to-open this put contract, they commit to buying CleanSpark shares at $6.00. However, after collecting the premium, the effective cost basis would fall to $5.45 (excluding broker commissions). For investors already contemplating buying CLSK shares at the current price of $6.85, this represents a financially attractive alternative.

Notably, the $6.00 strike price is around a 12% discount compared to CleanSpark’s current trading price. This indicates that the put contract is out-of-the-money by that percentage, presenting a scenario where it could expire worthless. Current analytical data, including greeks and implied greeks, suggest there’s a 69% chance of this outcome. We will continue to monitor these odds and provide updates on our website, including a chart detailing this information. Should the contract expire worthless, the premium collected would yield a 9.17% return on the cash commitment, equating to an annualized return of about 72.74%. This figure is known as the YieldBoost.

Trading History Snapshot

Below is a chart that displays the trailing twelve months of trading history for CleanSpark Inc, with the $6.00 strike position highlighted in green:

Call Contract Insights

On the calls side, the contract at a strike price of $7.00 currently holds a bid of 79 cents. If an investor buys CLSK shares at $6.85 each and sells-to-open this call as a covered call, they commit to selling the stock at $7.00. By collecting the premium, this approach could yield a total return of 13.72%, assuming the stock is called away by the May 16th expiration (again, excluding any dividends and broker commissions). However, should CLSK shares rise significantly, the investor might miss out on additional gains, underscoring the need to review both historical trade data and the company’s fundamentals. Below is the chart highlighting CLSK’s twelve-month trading history, with the $7.00 strike shown in red:

The $7.00 strike represents about a 2% premium over the current trading price, which means there is potential for the covered call contract to also expire worthless. If this occurs, the investor retains both their shares and the premium earned. The current analytical estimates suggest there’s a 48% chance of this outcome. As with the put contract, we will track and report these odds over time on our contract detail page, including the historical trading pattern of the option contract. If the covered call expires worthless, the premium would provide an 11.53% additional return, translating to an annualized figure of 91.51%, also referred to as YieldBoost.

Volatility Insights

The implied volatility for the put contract stands at 100%, while the call contract shows an implied volatility of 97%. In comparison, our calculations for the actual trailing twelve-month volatility—factoring in the last 250 trading days alongside today’s price of $6.85—are at 96%. For additional ideas on put and call options worth exploring, visit StockOptionsChannel.com.

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The views and opinions expressed herein are the author’s and may not reflect those of Nasdaq, Inc.