New Options Emerge for Clean Harbors Investors on May 16th

Investors in Clean Harbors Inc (Symbol: CLH) are now presented with new options trading set to expire on May 16th. At Stock Options Channel, our YieldBoost formula analyzed the options chain for CLH and identified noteworthy contracts—one put and one call.

Put Contract Details

The put contract at the $190.00 strike price currently bids at $7.50. If an investor sells this put contract, they agree to buy the stock at $190.00 while collecting the premium. This places their effective cost basis at $182.50, excluding broker commissions. This offer could appeal to those already interested in acquiring CLH shares without paying the current market price of $195.78 per share.

As the $190.00 strike price represents about a 3% discount from the current stock price, there is a chance that the put may expire worthless. Current data suggests a 63% probability of this outcome. Stock Options Channel will monitor these odds over time and display changes on our contract detail page. Should the contract expire worthless, the premium equates to a 3.95% return on the cash commitment, translating to an annualized yield of 22.17%, which we label as YieldBoost.

Below is a chart illustrating the trailing twelve-month trading history for Clean Harbors Inc, highlighting the position of the $190.00 strike price:

Call Contract Overview

On the call side of the options chain, the $200.00 strike price is currently bidding at $10.60. If an investor buys CLH shares at the current price of $195.78 and sells this call as a covered call, they would commit to selling the stock at $200.00. Including the premium collected, this strategy could yield a total return of 7.57% if the shares are called away by the May 16th expiration date, excluding dividends or broker commissions.

However, there is potential upside risk since significant price increases in CLH may result in lost gains. Therefore, reviewing the trailing twelve-month trading history and analyzing broader business fundamentals is essential. Below is a chart depicting the trading history of CLH with the $200.00 strike highlighted:

The $200.00 strike represents an approximate 2% premium to the current trading price, making it out-of-the-money by that percentage. This contract also carries the risk of expiring worthless, allowing the investor to retain both their shares and the collected premium. Current analytical data indicates a 49% chance of such an outcome. We will continue to track these odds and present trends on our website’s contract detail section. Should the covered call expire worthless, it would yield a 5.41% return enhancement or an annualized 30.40%, also referred to as YieldBoost.

Volatility Insights

The implied volatility for the put contract stands at 41%, while the call contract has an implied volatility of 37%. In contrast, the actual trailing twelve-month volatility—calculated from the last 250 trading days coupled with today’s price of $195.78—sits at 28%. For further insights into various put and call options contracts, visit StockOptionsChannel.com.

Top YieldBoost Calls of the S&P 500 »

See more:

• Shares Outstanding History
• RHT Price Target
• CHGG Historical Stock Prices

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