Unveiling Promising Options for Thoughtful Investors
As the curtains rise on the theater of trading, investors in Tractor Supply Co. (TSCO) witness a captivating spectacle: new options emerging on the stage for the May 31st expiration. It’s akin to uncovering lost treasure as our YieldBoost formula delves into the TSCO options chain, revealing a put and a call contract that gleam with tantalizing potential.
A Closer Look at the Put Option
Behold the put contract standing proudly at the $230.00 strike price, beckoning with a current bid of $2.40. Imagine the savvy investor who dares to sell-to-open this put contract, pledging to acquire the stock at $230.00 while also reaping the premium. Such valor would set the cost basis of the shares at $227.60 pre-commissions. For those eyeing TSCO shares, it presents a tempting proposition compared to today’s price of $247.39 per share.
Such opportunity stems from the $230.00 strike, offering around a 7% discount from the current trading price—a treasure trove for the risk-savvy. With current data painting an 81% probability of the put contract fading into oblivion, Stock Options Channel stands as a vigilant guardian, tracking these odds diligently. And should the contract meet its demise, the premium would yield a 1.04% return on the cash pledge, or a dazzling 7.62% annualized return—an enchanting tale of financial prowess.
Delving into the Calls
Turning our gaze to the calls side of this grand gala, a call contract at the $255.00 strike awaits, whispering a bid of $7.80. Picture the investor acquiring TSCO shares at the current price, then venturing to sell-to-open this call contract—a covered call. By committing to sell the stock at $255.00, they embark on a journey where, upon call, a total return of 6.23% (pre-dividends) gleams on the horizon by the May 31st dawning. But caution—the lure of untapped potential lingers if TSCO shares soar, underscoring the importance of studying the trailing twelve-month trading history.
With the $255.00 strike dangling a 3% premium over the current trading price, the call contract holds the promise of expiration without consequence, keeping both stock and premium with the investor. Data reveals a 53% chance of this outcome, prompting Stock Options Channel to monitor these odds diligently. A worthless contract would yield a 3.15% bonus return to the daring investor, or a staggering 23.02% annualized—a thrilling tale of triumph in the options market.
Unveiling the Volatility
The implied volatility in both put and call contracts dances around 29%, setting the stage for a riveting show. Meanwhile, actual trailing twelve-month volatility, amidst the daily bustle, stands at 23%, lending a sense of stability to the tumultuous dance of options trading. For those seeking further options contract insights, a visit to StockOptionsChannel.com is akin to embarking on a quest for hidden treasures in the vast market seas.
As the trading orchestra plays on, investors find themselves at a crossroads of opportunity, pondering the mystical world of options. The divination of future paths lies not in crystal balls but in diligent research and analytical prowess, guiding investors toward untold riches within the enigmatic world of options trading.
