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The Dynamic World of NKLA Options Trading Insights

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Exploring New NKLA Options for May 10th

Investors delving into the realm of Nikola Corp (Symbol: NKLA) this week witnessed the unveiling of fresh options for the May 10th expiration. Stock Options Channel, utilizing its YieldBoost formula, diligently scanned through the NKLA options chain for these new May 10th contracts, uncovering one put and one call contract that have caught the eye of many astute individuals.

A Deep Dive Into Put Options

One fascinating prospect is the put contract situated at the $1.00 strike price, currently boasting a bid of 13 cents. By engaging in selling-to-open this put contract, investors are effectively pledging to acquire the stock at $1.00. However, they will also be entitled to pocket the premium, effectively setting the cost basis of the shares at $0.87 (before any broker commissions). For those eyeing NKLA shares, this might just prove to be an enticing alternative, especially when contrasted with the current $1.04/share price.

With the $1.00 strike presenting an approximately 4% discount to the present trading price of the stock, there lies a possibility that the put contract may expire fruitlessly. The latest analytical data, inclusive of greeks and implied greeks, imply an 82% likelihood of this outcome. Stock Options Channel pledges to monitor these odds closely over time and plans to showcase a detailed chart of these numbers on our website, providing a comprehensive analysis.

The Fascinating World of Call Options

On the calls side of the option chain, attention is drawn to the call contract perched at the $1.50 strike price, holding a current bid of 12 cents. Should an investor opt to procure NKLA shares at the $1.04/share level and subsequently engage in a β€œcovered call” by selling-to-open the call contract, they lock themselves into selling the stock at $1.50. By factoring in the premium collection, this move could yield a total return (excluding any dividends) of 55.77% in the event the stock is called away come May 10th expiration.

It is essential, however, for investors to ponder the intricacies of the trailing twelve-month trading history for Nikola Corp before taking the plunge. The $1.50 strike’s approximate 44% premium to the ongoing trading price signifies the potential of the covered call contract expiring without value. Presently, the analytical data suggests a 61% likelihood of such an occurrence. Stock Options Channel remains committed to closely monitoring and charting these odds over time, ensuring investors garner detailed insights into their options trading endeavors.

Volatility and Insights

Implied volatility stands at 164% in the put contract example and 165% in the call contract illustration. In parallel, the tangible trailing twelve-month volatility, accounting for the last 249 trading day closing values alongside today’s price of $1.04, clocks in at 133%. For a treasure trove of stimulating put and call options contract suggestions, a visit to StockOptionsChannel.com is highly advisable.

Also see:

Β• YUME Price Target
Β• JHG Next Dividend Date
Β• SFL Stock Predictions

The viewpoints expressed herein reflect the musings and perspectives of the author and may not necessarily align with those of Nasdaq, Inc.

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