New Put Option Opportunities for Investors in Capital Group Core Equity ETF
Options Trading Insights for March 21st Expiration
Investors holding Capital Group Core Equity ETF (Symbol: CGUS) can consider new options available this week, specifically for contracts expiring on March 21st. Stock Options Channel has identified a noteworthy put contract among these options.
The put contract with a $35.00 strike price currently has a bid of 15 cents. By selling-to-open this contract, an investor agrees to buy the stock at $35.00, while also collecting the premium. This effectively lowers the cost basis of the shares to $34.85 (excluding broker fees). For those interested in acquiring CGUS shares, this could prove to be a more appealing option than purchasing at the current price of $36.06 per share.
Understanding the Market Dynamics
The $35.00 strike price is about a 3% discount compared to the current trading value, indicating it’s out-of-the-money by that percentage. There is a 69% chance the put contract will expire worthless based on the latest analytical data, which incorporates metrics such as greeks and implied greeks. Stock Options Channel plans to monitor these odds over time and will display updates on our website’s contract detail page. Should the contract end up being worthless, the premium would yield a return of approximately 0.43% on the cash commitment, translating to a 4.23% annualized return, a figure we refer to as the YieldBoost.
Historical Trading Data at a Glance
Below is a chart showcasing the trading history of Capital Group Core Equity ETF over the past twelve months, with the $35.00 strike price marked in green for easy reference:
The implied volatility for the mentioned put contract stands at 28%. In contrast, our analysis of the actual trailing twelve-month volatility, based on the last 250 trading days and the current stock price of $36.06, is calculated at 12%. For additional insights on lucrative put and call options, visit StockOptionsChannel.com.
Top YieldBoost Puts of the S&P 500 »
Additional Resources:
- GILD market cap history
- MFA Price Target
- Institutional Holders of IWX
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
