New Options Available for Haemonetics Investors: A Potential Game-Changer
Investors in Haemonetics Corp. (Symbol: HAE) were presented with new options today, set to expire in February 2025. These contracts, available for trading, offer an opportunity for sellers of calls or puts to potentially secure a higher premium compared to options with shorter expiration dates, thanks to their 74 days until expiration. Stock Options Channel’s YieldBoost formula has analyzed the HAE options chain and highlights two specific contracts of interest.
Put Option Insights: $80.00 Strike Price
The put contract at the $80.00 strike price currently has a bid of $2.50. If an investor decides to sell-to-open this put contract, they agree to buy the stock at $80.00 while simultaneously collecting the premium. This reduces the effective cost basis of acquiring the shares to $77.50 (before broker commissions). For investors interested in purchasing HAE shares, this approach represents an appealing alternative to buying at the current price of $81.40 per share.
This $80.00 strike is roughly 2% below the current trading price, indicating that it is out-of-the-money by that same percentage. There’s a potential that the put contract could expire worthless, and current data suggests a 59% chance of this occurring. Stock Options Channel will continue to monitor these odds and will publish updates on their website with a chart reflecting this contract’s statistics. If the contract does expire worthless, the premium translates to a 3.12% return on the cash used for this investment, equating to an annualized return of 15.41%, a figure we denote as YieldBoost.
Call Option Opportunities: $85.00 Strike Price
Looking at the calls side, the $85.00 strike call contract is currently bidding at $1.95. If an investor purchases HAE shares at the existing price of $81.40 and sells this call contract as a “covered call,” they would be agreeing to sell the stock at $85.00. Including the collected premium, this strategy could yield a total return of 6.82% if the stock is called away at the February 2025 expiration, not accounting for dividends (if applicable). However, substantial upside may be missed if HAE shares significantly increase in value; thus, reviewing HAE’s historical trading performance and business fundamentals is crucial.
Below is a chart displaying HAE’s trading history over the past twelve months, with the $85.00 strike prominently highlighted:
The $85.00 strike price represents a 4% premium against the current trading price of HAE, indicating it is out-of-the-money by this percentage. There exists a possibility that this covered call contract could also expire worthless, allowing the investor to keep both their stock and the premium earned. Current analytics reflect a 56% chance of this happening. Over time, Stock Options Channel will track these numbers and offer insights through published charts. If the covered call expires without being exercised, the premium would account for an extra 2.40% of returns to the investor or an annualized rate of 11.82%, which we also categorically label as YieldBoost.
The implied volatility for both example contracts is around 37%. Concurrently, we estimate the trailing twelve-month volatility, assessed through the last 250 trading days and today’s price of $81.40, to be at 31%. For additional ideas on put and call options worth considering, explore StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
- Top Ten Hedge Funds Holding CPLS
- Nike market cap history
- DLTH market cap history
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
