New Options Trading for SharkNinja Inc: Insights for Investors
Detailed Look at Put and Call Contracts for SharkNinja Inc.
Investors in SharkNinja Inc (Symbol: SN) observed new options trading start this week, focusing on contracts set to expire in February 2025. Stock Options Channel utilized its YieldBoost formula to analyze the SN options chain, identifying one significant put and one call contract.
The put contract priced at a $92.50 strike has a current bid of $6.10. If an investor opts to sell-to-open this put, they commit to buying the stock at $92.50 and collect the premium, effectively reducing their cost basis to $86.40 (before broker commissions). For those keen on acquiring shares of SN, this alternative could be attractive compared to today’s price of $95.27 per share.
This $92.50 strike is approximately a 3% discount from the current trading price of the stock, meaning it is out-of-the-money by that same percentage. Analytical data indicates a 60% chance that the put could expire worthless. Stock Options Channel will continue to monitor these odds and publish updates on their contract detail page. Should the option expire worthless, the premium would yield a 6.59% return on the cash commitment or an annualized rate of 40.12%. This figure is referred to as the YieldBoost.
Below is a chart showing the trailing twelve-month trading history for SharkNinja Inc, with the strike price of $92.50 noted in green:
Exploring Call Contracts: Potential Returns
On the call option side, a contract with a $97.50 strike price has a current bid of $7.30. Should an investor buy shares of SN at the current $95.27 price and opt for a “covered call,” they are agreeing to sell at $97.50. By incorporating the premium, this strategy could result in a total return of 10.00% if the stock is called away by February 2025 (excluding dividends and broker commissions). However, if SN shares rise significantly, there could be missed gains. Hence, reviewing SN’s twelve-month trading history and business fundamentals is essential.
The chart below illustrates the trailing twelve-month trading history for SharkNinja Inc, highlighting the $97.50 strike in red:
Since the $97.50 strike is approximately a 2% premium to the current trading price, there is a chance the covered call could also expire worthless. In that scenario, the investor retains both their shares and the premium earned. Current data suggests a 49% likelihood of this outcome. Over time, Stock Options Channel will monitor these probabilities and provide updates, including the trading history of the contract. If the call expires worthless, the premium would provide a 7.66% additional return, translating to an annualized rate of 46.61%, also referred to as the YieldBoost.
The implied volatility for the put contract stands at 53%, while the call contract exhibits an implied volatility of 56%. On the other hand, the actual trailing twelve-month volatility, based on the past 250 trading days and the current stock price of $95.27, is calculated at 39%. For more insights on put and call options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
