HomeMost PopularInsights into the First Trading Week of November 15th Options for Wyndham...

Insights into the First Trading Week of November 15th Options for Wyndham Hotels & Resorts (WH)

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New Opportunities Unveiled in WH Options Trading

Trading for Wyndham Hotels & Resorts Inc (WH) stock options kicked off this week, with the onset of the November 15th expiration contracts. The introduction of these contracts, expiring in approximately 245 days, presents a unique prospect for both put and call sellers to potentially secure a premium higher than those with a closer expiration date. The newly available $55.00 strike put and call contracts have particularly piqued the interest of market participants for varied strategic reasons.

Exploring Put Options at $55.00 Strike Price

The put contract at the $55.00 strike is generating attention with a current bid of 5 cents. Those opting to sell-to-open this put contract would commit to acquiring the stock at $55.00 but would also receive the premium. This move effectively sets the cost basis of acquiring shares at $54.95, offering a viable alternative to the current $77.89/share price, all seasoned with a flavor of strategic investment prudence.

Unpacking the Market Dynamics

Given the $55.00 strike’s 29% discount to the prevailing stock price, it positions as an out-of-the-money opportunity with an 87% likelihood of expiring worthless, as per current analytical data. Stock Options Channel vows to monitor these odds closely and promises to serve up a detailed statistical representation for diligent investors.

Visualizing Call Options at $80.00 Strike Price

On the flip side, the call contract at the $80.00 strike carries a bid of $3.60, enticing investors longing for a covered call indulgence. By purchasing WH shares at the current $77.89/share rate and venturing into a covered call scenario, they undertake a commitment to sell the shares at $80.00. The potential return, excluding dividends, teases at a tempting 7.33% if the stock finds itself called away upon expiry.

Market Watch and Analytical Perspectives

Considering the covered call’s near 3% premium to the current stock price, there’s a 47% probability of the contract expiring worthless, marking a bittersweet outcome of holding onto shares and pocketing the collected premium. With implied volatility playing at 48% for puts and 25% for calls, and actual trailing twelve-month volatility calculated at 23%, the WH options arena brims with opportunities and risks waiting to be navigated.

For a deeper dive into potential put and call options concepts, dive into the offerings at StockOptionsChannel.com.

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The viewpoints expressed herein constitute the author’s stance and not necessarily Nasdaq, Inc.’s.

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