DoubleVerify Holdings Offers New Options Trading with Attractive Returns

Investors in DoubleVerify Holdings Inc (Symbol: DV) noted the launch of new options this week, set to expire on April 17th. At Stock Options Channel, our YieldBoost formula examined the DV options chain for these new contracts and identified a notable call contract.

Key Call Contract Details

The call contract at the $12.50 strike price currently holds a bid of 30 cents. An investor purchasing shares of DV at the present price of $12.29 per share can opt to sell-to-open that call contract as a “covered call.” This strategy commits the investor to sell their shares at $12.50. Including the premium received from the call, this strategy could yield a total return of 4.15% if the stock is called away at the April 17th expiration (before accounting for broker commissions). However, if DV shares experience significant growth, potential gains beyond the strike price could be missed, emphasizing the importance of reviewing the trailing twelve-month trading history and fundamental business metrics for DoubleVerify Holdings Inc.

Below is a chart displaying DV’s trailing twelve-month trading history, with the $12.50 strike highlighted in red:

Market Perspectives on Strike Price

The $12.50 strike represents an approximate 2% premium over the current trading price of the stock, categorizing it as out-of-the-money by that percentage. There remains a possibility that the covered call contract could expire worthless, allowing the investor to retain both the shares and the premium collected. Current analytical data suggest a 54% likelihood of this occurrence. At Stock Options Channel, we monitor these probabilities over time and provide insights through published charts tracking the trading history of the option contract. Should the covered call expire worthless, the premium realized would translate to a 2.44% added return for the investor—annualized at 111.37%, a figure we term YieldBoost.

Volatility Insights

The implied volatility in the discussed call contract is 84%. In contrast, our analysis calculates the actual trailing twelve-month volatility at 74%, based on the last 251 trading days alongside today’s price of $12.29. For more options contract ideas worth exploring, visit StockOptionsChannel.com.

Top YieldBoost Calls of the S&P 500 »

also see:

• WRB Dividend Growth Rate
• DBVT shares outstanding history
• Top Ten Hedge Funds Holding EDZ

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