Exploring Options for May 17th Expiration
As the week unfolded, investors keenly observed the introduction of new options for Targa Resources Corp (TRGP) reaching their pinnacle by May 17th. The YieldBoost formula crafted by Stock Options Channel meticulously scrutinized the TRGP options chain, singling out a put contract with intriguing prospects.
The Art of Put Contracts
The put contract at the $105.00 strike price beckoned with a current bid of $2.55. Savvy investors contemplating selling-to-open that put contract embrace a commitment to purchase the stock at $105.00. However, they stand to reap the premium, effectively pegging the cost basis of shares at $102.45 (pre-broker commissions). A tantalizing prospect indeed for enthusiasts eyeing TRGP shares as it presents an alluring alternative to today’s price tag of $107.84 per share.
A Valuable Discount
Intriguingly, the $105.00 strike signals a modest 3% markdown from the current trading price, thereby positioning it as out-of-the-money by that margin. This narrative unfurls with the tantalizing prospect that the put contract might expire as mere paper, fetching a worthless fate. Current analytical data, complete with greeks and implied greeks, posit the odds of this occurrence at 64%. Stock Options Channel stands poised to trace these odds meticulously, curating a chart with these dynamic numbers on our digital domain.
Grasping the Implied Volatility
In this delightful financial dance, the exemplified put contract boasts an implied volatility rate of 26%. While we’re here crunching numbers, let’s mull over the actual trailing twelve-month volatility sitting neatly at 23%. For a bouquet of put and call options worth exploring, do saunter over to StockOptionsChannel.com.
Meanwhile, in another corner of Wall Street, a soaring narrative awaits at StockOptionsChannel.com.
