HomeMarket NewsUnveiling the Options Dance: A Look at ISRG's May 3rd Trading Scenario

Unveiling the Options Dance: A Look at ISRG’s May 3rd Trading Scenario

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Exploring the Options Chain

Venturing into the risky yet enticing world of options trading, investors in Intuitive Surgical Inc (Symbol: ISRG) have caught wind of the newly available May 3 options. Specifically, the $385.00 put and call contracts have piqued the interest of many astute traders today.

The Put Path: Potential Plays and Projections

Diving deeper into the put contract at the $385.00 strike price, the current bid stands at $10.80. Sellers opting to commit to purchasing the stock at $385.00 are simultaneously eyeing the premium, setting the stage for a cost basis of $374.20 per share, pre-commissions. For investors considering an ISRG stake, this presents a tantalizing alternative to current trading prices, hovering at $394.55 per share.

With a 2% markdown in relation to the stock’s current price, the $385.00 strike could lead to the put contract expiring void of value. Analytical data, including greeks and implied greeks, echoes a 62% likelihood of this outcome. As we monitor these odds over time, you’ll find us sharing the dynamic charts on our platform for enhanced clarity. The potential expiration of the contract sans value could equate to a robust 2.81% return on the cash outlay, or a notable 23.81% annualized return, a phenomenon we affectionately term the β€œYieldBoost.”

A Glimpse at the Call Side: Unveiling Upside and Outcomes

Shifting gears to the domain of call options, the $400.00 strike boasts a $14.40 bid. An investor opting to secure ISRG shares at the existing price of $394.55 per share and then engaging in a β€œcovered call” by selling-to-open the $400.00 contract pledges to vend the stock at $400.00. This strategic move could yield a 5.03% total return, excluding dividends, should the stock be called away during the May 3rd expiration, before broker commissions. However, forsaking this security could risk missing out on significant profit potential from a potential ISRG market surge. Pathfinders embarking on this journey wisely scrutinize the historical stock performance of Intuitive Surgical Inc, recognizing that a plan marked β€œout-of-the-money” carries with it nuanced considerations.

Understanding Historical Context in Speculative Endeavors

Referring to the historical context can be pivotal as the $400.00 strike sits at a nearly 1% premium from the current trading price. Therein lies the prospect that the covered call contract could dissolve fruitlessly, embodying an investor’s retention of both shares and the collected premium. Analytical data hints at a 51% chance of this scenario unfolding. We pledge to update you on these odds’ evolution over time through our detailed contract analysis, offering you a window into these deviations. Should the covered call contract end vacuously, the premium could furnish a 3.65% supplementary return to the investor, or a striking 30.98% annualized bonus, known colloquially as the β€œYield Boost.”

The Implied Dynamics and Future Prospects

The implied volatility stands at 32% and 33% for put and call contracts, respectively. Stepping back to reflect on the general stock performance, incorporating the actual trailing twelve-month volatility – fixed at 29% amidst recent figures – proves enlightening. For a treasure trove of options strategies, navigate your course to StockOptionsChannel.com and navigate the sea of intriguing possibilities engulfing the realm of options trading.

nslideshowTop YieldBoost Calls of the Nasdaq 100 Β»

Also see:

Β• STE market cap history
Β• ACGL Options Chain
Β• ETFs Holding FRME

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

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