Today marks the arrival of new options for Graco Inc (Symbol: GGG) as investors gear up for the April 19th expiration. At Stock Options Channel, our focal point is a detailed analysis of the GGG options chain for these fresh April 19th contracts. Out of the lot, one put and one call contract standout, igniting the interest of traders all across the board.
One distinguishable put contract stands at the $75.00 strike price with a current bid of 10 cents. Should an investor decide to sell-to-open that put contract, they are effectively committing to purchase the stock at $75.00, while simultaneously pocketing the premium. This reduces the cost basis of the shares to $74.90 (before broker commissions). For those contemplating acquiring GGG shares, this could emerge as a viable alternative to shelling out $88.48/share today.
What makes the $75.00 strike so intriguing is its approximately 15% markdown from the current trading price of the stock, implying it is out-of-the-money by that percentage. Additionally, there is a possibility that the put contract may expire worthless. With current analytical data hinting at a 99% probability, Stock Options Channel will closely monitor these odds over time and present a chart of those numbers on our website under the contract detail page for this term.
Bridging the gap between historical context and present opportunities, we find that the $75.00 strike holds significant relevance. Imbued with a 0.13% return on the cash commitment or 0.76% annualized, our signature YieldBoost tag comes to life.
Shifting focus to the calls side of the option chain, a call contract sitting at the $90.00 strike price is generating interest with a current bid of 10 cents. If an investor opts to purchase shares of GGG stock at the present price level of $88.48/share, and then sells-to-open that call contract as a “covered call,” they effectively commit to sell the stock at $90.00. Factoring in the premium, this paves the way for a total return of 1.83% if the stock gets called away at the April 19th expiration (before broker commissions).
The $90.00 strike, marking an approximate 2% premium to the current trading price of the stock, also offers the possibility of the covered call contract expiring worthless; the current odds of that happening stand at 99%. Stock Options Channel will faithfully track these odds over time and will chart the trading history of the option contract.
Adding to the intrigue, the actual trailing twelve-month volatility is computed to be 24%. All these indicators come together to paint an intricate tapestry of enticing opportunities for astute investors.
For investors keen on exploring further put and call options contract ideas, a visit to StockOptionsChannel.com might just be the order of the day as it unfolds.
