Ladies and gentlemen, fasten your seatbelts as we embark on a thrilling journey into the world of options trading with Invesco Ltd (Symbol: IVZ). Today marks the beginning of a new chapter in the company’s history, as fresh options have entered the arena. These options, set to expire on October 18th, bring a tantalizing prospect for astute investors. With 246 days until expiration, the stage is set for a strategic play with potentially fruitful outcomes for sellers of puts or calls. As we delve into the derivatives market, the revered YieldBoost formula devised by Stock Options Channel has unearthed intriguing insights within the IVZ options chain. Let’s explore the compelling narrative that unfolds within these contracts of particular interest.

An Overture of Puts: Striking Gold at $13.00

Picture this – a put contract at the strike price of $13.00, with a current bid of 40 cents. An investor, eyeing IVZ shares, could seize the opportunity to sell-to-open this put contract. By doing so, they would commit to purchasing the stock at $13.00, while reaping the premium and lowering the cost basis of the shares to $12.60 (before broker commissions). This, my friends, presents an enticing alternative to acquiring shares at today’s price of $15.48 per share. It’s like snagging a discount at a high-end boutique sale – an irresistible deal that beckons the savvy shopper.

Consider this – the $13.00 strike represents a tantalizing approximately 16% discount to the current trading price of the stock. In essence, it’s out-of-the-money by that percentage, implying the potential for the put contract to expire worthless. The current analytical data, including greeks and implied greeks, suggest a staggering 99% probability of this occurrence. But wait, there’s more! Stock Options Channel pledges to monitor these odds over time, curating a visual depiction of this numerical dance on our website. If the contract were to meet such a fate, the premium would yield a handsome 3.08% return on the cash commitment, or a dazzling 4.57% annualized return. At Stock Options Channel, we affectionately dub this the ‘YieldBoost’ – a thrilling performance by any measure.

A Symphony of Calls: The $18.00 Overture

Now, let’s shift our gaze to the calls side of the option chain. Behold, the call contract at the $18.00 strike price, boasting a current bid of 65 cents. Imagine an investor purchasing IVZ shares at the current price of $15.48 per share and then embarking on a journey to sell-to-open this call contract as a “covered call.” This entails a commitment to sell the stock at $18.00, all while relishing the premium. Should the stock bid adieu at the October 18th expiration, the total return, excluding dividends if any, would amount to a dazzling 20.48% (before broker commissions). But hold your horses, for there’s a catch. If IVZ shares were to soar to great heights, the potential upside would be left unclaimed, underscoring the importance of studying the business fundamentals and delving into IVZ’s trailing twelve-month trading history.

Let’s take stock of this – the $18.00 strike represents an alluring approximately 16% premium to the current trading price of the stock. In other words, it’s out-of-the-money by that percentage, creating the possibility for the covered call contract to expire worthless. The current analytical data, including greeks and implied greeks, echo a resounding 99% likelihood of this outcome. Fear not, for Stock Options Channel stands resolute, charting the ebb and flow of these odds over time on our website. If the covered call contract were to meet its demise, the premium would bestow a delightful 4.20% boost of extra return to the investor, or a charming 6.23% annualized return. This, my friends, unfurls as the revered ‘YieldBoost’ – an enchanting spectacle of financial finesse.

An Ode to Volatility: Unveiling the Trailing Twelve-Month Tale

As we stand amidst the tumultuous landscape of options, let us not overlook the actual trailing twelve-month volatility, standing at a remarkable 33% (considering the last 251 trading day closing values along with today’s price of $15.48). For those craving more tantalizing put and call options contract ideas, a visit to StockOptionsChannel.com proves to be a journey well worth undertaking.

Dear readers, the stage is set, the options are in play, and the field is ripe with opportunities. As we bask in the gallant performance of IVZ options, framed against the backdrop of historical context and market dynamics, let us dive into the world of financial storytelling with zest and zeal. For in this volatile theater, where options dance to the tune of risk and reward, every contract tells a riveting tale of chance and choice.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.