First Week of BB May 17th Options Trading

As investors delved into BlackBerry Ltd (Symbol: BB) this week, a fresh array of options beckoned with the May 17th expiration date looming. With our YieldBoost formula at Stock Options Channel scrutinizing the BB options chain, it has unearthed a put and a call contract worthy of attention.

Let’s delve into the intriguing landscape of possibilities that this new trading week has unfurled for avid shareholders.

Behold the put contract stationed at the $2.50 strike price shimmering with a current bid of 9 cents. Picture this – an investor selling-to-open that put contract is poised to snatch the stock at $2.50 while pocketing the premium. This artful maneuver slashes the cost basis down to $2.41, serving as a tantalizing proposal for those eyeing BB shares at $2.95 today.

The $2.50 strike not only stands as a sweet 15% discount from the prevailing stock price but also ventures beyond the money realm by that percentage. Our data whispers that the odds of the put contract expiring worthlessly reside at a formidable 80%. Stock Options Channel will keep a watchful eye on these odds, crafting a visual narrative through numbers on our website. If the contract withers into nothingness, the premium spells out a honeyed 3.60% return on cash commitment, or an alluring 20.86% annualized – a delicacy we term the YieldBoost.

Casting our gaze towards the calls side, behold the call contract nestled at the $3.50 strike with a bid of 16 cents. Picture this – an investor procuring BB stock at $2.95 and subsequently embarking on selling-to-open the call contract as a “covered call” agrees to vend the stock at $3.50. This symphonic alliance between the call seller and the premium leads to a majestic total return of 24.07% at the May 17th expiration, sans dividends. However, divine mysteries lurk if BB shares decide to soar beyond the horizon.

The $3.50 strike unveils itself as a ravishing 19% premium over the current trading price, hinting at its departure from the money territory by said percentage. The call contract dances with a 55% chance of meeting a worthless demise, a revelation bestowed by our analytical oracle. Stock Options Channel will be your guidepost, charting the metamorphosis of these odds over time. Should the covered call contract vanish into thin air, the premium bestows a regal 5.42% extra return, or a mesmerizing 31.42% annualized – known affectionately as the YieldBoost.

In the realm of implied volatilities, the put contract whispers at 74%, while the call contract bellows at 94%. Meanwhile, the enchanting tale of trailing twelve-month volatility, considering the last 251 trading days and today’s $2.95 price, paints a portrait at 59%. Seek more captivating put and call options contract ideas at StockOptionsChannel.com, where tales of financial wonder await.

Top YieldBoost Calls of the S&P 500 »