Investors Eye New Options for MSCI Global Gold Miners ETF

Investors in iShares Inc – MSCI Global Gold Miners ETF (Symbol: RING) have new options available, specifically for the May 16th expiration date. Utilizing our YieldBoost formula at Stock Options Channel, we examined the RING options chain and identified a noteworthy call contract.

Key Call Contract Details

The call contract with a strike price of $36.00 currently has a bid of $2.45. If an investor purchases shares of RING at the current price of $35.55 per share, they can sell the call contract as a “covered call.” This strategy commits them to sell the stock at $36.00. Considering the premium collected, this approach could result in a total return of 8.16% if the stock gets called away by the May 16th expiration, excluding any dividends and broker commissions.

Market Dynamics and Potential Outcomes

Investors should be cautious, as significant upside could be missed if RING shares experience substantial gains. Therefore, reviewing RING’s trailing twelve-month trading history, along with the company’s fundamentals, is advisable. The chart below illustrates RING’s trading history over the past year, highlighting the $36.00 strike in red:

Strike Price and Expiration Insights

The $36.00 strike price represents approximately a 1% premium over the current trading price, which indicates it is slightly out-of-the-money. This means there is a chance the covered call contract may expire worthless, allowing the investor to retain both their shares and the premium. Current analytical data suggests there is a 35% probability of this scenario occurring. Our website will monitor these odds and track changes over time, including the trading history of the option contract.

YieldBoost Potential

Should the call contract expire worthless, the premium collected may provide a 6.89% boost in returns for the investor, which annualizes to 59.89%. This metric is what we refer to as the YieldBoost.

Volatility Analysis

The implied volatility for the discussed call contract stands at 63%. In contrast, we calculate the actual trailing twelve-month volatility to be 32%, based on the past 251 trading day closing values in conjunction with today’s price of $35.55. For further relevant put and call options contract ideas, please visit StockOptionsChannel.com.

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