Exploring New Options Trading for HALO
During the first week of May, investors witnessed the initiation of new options trading activity for Halozyme Therapeutics Inc (HALO) with a focus on the May 17th expiration. Striding through the world of financial possibilities, the Stock Options Channel unveiled intriguing opportunities within HALO’s options chain, spotlighting a put and a call contract with unique allure.
Unveiling Investment Options
Eager investors caught sight of a put contract at the $40.00 strike price, showcasing a current bid of $1.95. Delving into the realm of financial transactions, selling-to-open this put contract meant pledging to procure the stock at $40.00 while reaping the premium, which would effectively set the share’s cost basis at $38.05 (prior to broker commissions). For investors looking to dive into HALO’s shares, this could present an enticing avenue compared to the current share price of $40.46.
Flowing down the river of financial calculations, the $40.00 strike stands as a charming 1% markdown from the stock’s current trading price, residing out-of-the-money by that equivalent percentage. With the current statistical data hinting at a 58% chance of this put contract expiring valueless, Stock Options Channel remains vigilant, monitoring the odds over time. Should this contract meet a worthless end, the premium would blossom into a 4.88% cash commitment return or a tantalizing 33.57% annualized gain, affectionately coined as the ‘YieldBoost.’
A Glimpse into the Trading Past
Peering into the historical corridors of HALO’s trading trajectory over the trailing twelve months, investors catch sight of a captivating dynamic. The $40.00 strike nestles itself within the price history, offering a navigational marker amidst the undulating waves of market fluctuations.
Lurking on the calls flank, a call contract at the $45.00 strike price beckons with a 90 cents bid, inducing a game of financial maneuvering. Those bold enough to acquire HALO shares at the present $40.46 price and then engage in a ‘covered call’ by selling-to-open the $45.00 strike, commit to vending the stock at $45.00. This intricate dance of transactions entails a potential 13.45% total return (sans dividends) if the stock ascends to the heavens of market expectations by the May 17th expiration, prior to broker commissions.
Navigating the treacherous terrain of call contracts, the $45.00 strike flaunts an approximate 11% premium over the current trading price of the stock, dwelling out-of-the-money by that cheerful margin. With the current odds hinting at a 72% chance of this covered call contract meeting a similar fate of expiring valueless, investors may revel in the prospect of retaining both their stocks and the premium garnered. Should this contract venture into the void of worthlessness, the premium would unfurl as a 2.22% boon to the investor’s return or a delightful 15.32% annualized feast, famously christened as the ‘YieldBoost.’
Delving into the realm of implied volatilities, the put contract example showcases a 40% volatility, while its call counterpart glimmers with a 39% volatility. Transitioning towards the realm of actual twelve-month volatilities, calculated on the basis of the last 250 trading days along with today’s price of $40.46, a 38% volatility emerges, painting a picture of tempestuous market conditions.
Emerging from this financial odyssey, investors seeking further options enlightenment are encouraged to wander through the troves of wisdom at StockOptionsChannel.com. The journey of financial understanding never truly ceases, as each option presents a new opportunity for growth and learning in the vast landscape of investment possibilities.
