Exploring New Avenues with May 17th Options
Investors tracking Philip Morris International Inc (Symbol: PM) witnessed a flurry of activity this week with the introduction of new options for the May 17th expiration. As traders gear up to navigate the options market, unique opportunities have surfaced on the horizon.
An Intriguing Put Option at $85.00 Strike Price
One standout in the list is the put contract at the $85.00 strike price, currently commanding a bid of 30 cents. For those considering a strategic move, selling-to-open this put contract could mean acquiring the stock at $85.00 while reaping the premium, effectively reducing the cost basis to $84.70. A potential discount of 8% from the current trading price tantalizingly dangles before investors – an enticing proposition amidst the daily market buzz.
Charting Unchartered Territories with Calls at $95.00 Strike Price
Shifting focus to the calls side of the option chain, the call contract standing tall at the $95.00 strike price offers a fresh perspective. With a current bid of $1.30, this call contract presents an opportunity for investors to purchase PM stock at $92.25/share and venture into the world of “covered calls.” By committing to sell the stock at $95.00, a potential total return of 4.39% awaits if the stock is called away at the May 17th expiration, ushering traders into uncharted territories with a streak of confidence.
As the $85.00 and $95.00 strike prices epitomize out-of-the-money prospects, there lies a realm of possibilities waiting to be explored. The art of options trading beckons investors to meld analytical data with historical trajectories, deciphering the signals amidst the volatility. With implied volatilities at 18% and 19% for put and call contracts respectively, juxtaposed against a trailing twelve-month volatility of 16%, traders are poised at a juncture where history converges with future prospects.
Redefining Strategies: YieldBoosting Returns
In a realm where risk and reward dance an eternal tango, the YieldBoost concept stands as a shimmering lighthouse guiding the ship of investments. With potential returns of 0.35% and 1.41% for put and call contracts respectively upon expiry, the allure of boosted returns beckons investors to reconsider their strategies. A mere transaction today could transmute into an annualized yield of 2.58% and 10.29%, reshaping the contours of traditional investment paradigms.
A Glimpse Beyond the Charts: Beyond Finance
For those caught in the ebbs and flows of the frenetic stock market, options trading transcends mere numbers and charts. It embodies the spirit of exploration, of daring to chart unknown territories, and of seizing opportunities amidst the uncertainty. As the options market pulses with vitality, traders stand at the cusp of a new dawn – where each contract, each bid, and each premium collected tells a tale of risk taken and rewards reaped.
