New Options Trading for Americold Realty Trust Inc Begins Today
Investors in Americold Realty Trust Inc (Symbol: COLD) saw new options trading begin today, expiring on August 15th. With 74 days until expiration, the new contracts offer sellers of puts and calls a potential for higher premiums compared to contracts with shorter expiration dates.
The put contract at the $15.00 strike price currently has a bid of 20 cents. Selling this put obligates the investor to buy the stock at $15.00 but also collects the premium, reducing the effective cost basis to $14.80. This offers a potentially attractive alternative for investors looking to buy shares at today’s price of $16.23.
The $15.00 strike price is approximately 8% below the current stock price, making it out-of-the-money. Current analysis suggests a 65% chance that the put will expire worthless. If so, the premium would yield a 1.33% return on the cash commitment, equating to an annualized return of 6.58%. This metric is referred to as the YieldBoost.
A chart below displays Americold’s trailing twelve-month trading history, highlighting the location of the $15.00 strike:
On the call side, the contract at the $17.50 strike price has a bid of 10 cents. Investors purchasing shares at $16.23 and selling this call as a covered call would commit to selling at $17.50. Including the premium collected, this could result in an 8.44% total return if the stock is called away by August 15th.
The $17.50 strike is about 8% higher than the current trading price, making it out-of-the-money. Current data indicates a 62% chance that this call will expire worthless, allowing the investor to keep both their shares and the premium. Should this happen, the premium would provide an extra return of 0.62%, or 3.04% on an annualized basis, also categorized as a YieldBoost.
The implied volatility for the put contract is 71%, while the call contract shows 42% volatility. The trailing twelve-month volatility, based on the last 249 trading day closing values, is calculated at 31%. For additional options trading opportunities, visit StockOptionsChannel.com.
Top YieldBoost Calls of the REITs »
Also see:
• FRST Dividend Growth Rate
• CCO Market Cap History
• KMM Historical Stock Prices
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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