Exploring Put and Call Options
On this eventful trading day, options for the June 21st expiration date became available to investors keen on Terex Corp. (TEX). A crucial component in determining the price of an option is the time value. With 119 days till expiration, these newly available contracts offer an enticing prospect for put or call sellers to garner a premium higher than what they would receive for nearer expiration contracts.
Precarious Put Option at $50.00 Strike
The put contract at the $50.00 strike point boasts a current bid of $2.40. By selling-to-open this put contract, an investor commits to buying the stock at $50.00, while also pocketing the premium. This action pegs the cost basis of the shares at $47.60. A notably attractive alternative for those eyeing TEX shares that presently trade at $53.42/share.
Insightful Call Option at $55.00 Strike
On the other end of the spectrum, the call contract at the $55.00 strike is currently bid at $3.60. A covered call strategy entails purchasing TEX shares at the current price of $53.42/share and then selling-to-open the call contract at $55.00. This approach could yield a total return of 9.70% if the stock is called away at the June 21st expiration.
Understanding the Odds
Both the put and call options carry the possibility of expiring worthless, with a 99% likelihood shown by current analytical data. The YieldBoost formula, a key tool from Stock Options Channel, tracks these odds and offers insightful charts to monitor changes in probability over time.
Examining Market History
A glance at the trailing twelve-month trading history of TEX reveals the strategic positioning of the $50.00 and $55.00 strike prices relative to market performance. This historical context lends valuable insights into potential outcomes for investors utilizing these options.
Exploring Volatility and Opportunities
The current trailing twelve-month volatility for TEX stands at 44%. For further options contract ideas and in-depth analysis, StockOptionsChannel.com serves as a valuable resource for investors in pursuit of lucrative opportunities.
Also see:
FNRG Historical Stock Prices
AWAY Options Chain
KNSL Historical Earnings
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
