New Options Trading for Graco Inc: Insights on $85 Put Contract
Investors in Graco Inc (Symbol: GGG) noticed the launch of new options today, set to expire on July 18th. Analysis from Stock Options Channel’s YieldBoost formula has highlighted a specific put contract that may interest traders.
Details of the $85.00 Put Contract
The put contract with an $85.00 strike price carries a current bid of 65 cents. If an investor decides to sell-to-open this contract, they commit to purchasing the stock at $85.00 while also collecting the premium. This action brings the effective cost basis of the shares down to $84.35, not accounting for broker commissions. For those looking to acquire GGG shares, this provides a more economical option compared to the current trading price of $85.48 per share.
Market Implications and Expiration Risks
The $85.00 strike represents about a 1% discount off today’s trading price, making it slightly out-of-the-money. Current analytics indicate a 56% probability that the put contract could expire worthless. Stock Options Channel will monitor these odds and publish any changes on the contract detail page of their website. If the contract does expire worthless, the premium would yield a 0.76% return on the cash commitment, equating to an annualized return of 4.36%, a figure referred to as the YieldBoost.
Graco Inc Trading History
Below is a chart displaying the trailing twelve-month trading history for Graco Inc, with the $85.00 strike price marked in green in relation to this history:
Volatility Insights
The implied volatility for the aforementioned put contract is 25%. In comparison, the actual trailing twelve-month volatility, calculated from the last 250 trading days alongside the current price of $85.48, stands at 22%. Investors seeking further insights into put and call options can explore additional opportunities at Stock Options Channel.
Top YieldBoost Puts of the S&P 500 »
Additional Resources:
- MAT Historical Stock Prices
- OKE Options Chain
- Funds Holding POTX
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
