Fresh Options on the Table for JinkoSolar Investors
New trading opportunities have opened up this week for investors in JinkoSolar Holding Co., Ltd. (Symbol: JKS) with upcoming options set to expire on February 21st. At Stock Options Channel, our YieldBoost formula has identified some notable contracts in the JKS options chain that could appeal to traders.
Analyzing the Attractive Put Option
One contract worth mentioning is the put option with a strike price of $20.00, currently bidding at 40 cents. By selling to open this put contract, an investor agrees to buy the stock at $20.00 while collecting the premium. This would effectively lower their cost basis to $19.60 (excluding any broker fees). For investors already considering JKS shares, this option presents an appealing alternative to paying the current market price of $21.32 per share.
The $20.00 strike is approximately 6% lower than the current trading price, meaning it is out-of-the-money by that margin. The analytical data suggests a 74% chance that the put contract will expire worthless. Over time, Stock Options Channel will continue monitoring and updating these odds, providing valuable insights on our website. If the put does indeed expire worthless, the premium would yield a 2.00% return on the cash commitment, equating to an impressive 66.36% annualized return — a figure we term the YieldBoost.
Exploring the Call Option Potential
On the call option side, there’s a contract at a $27.50 strike price, currently with a bid of 10 cents. If an investor buys shares of JKS at $21.32 and simultaneously sells this call option, they are agreeing to sell their shares at $27.50. Collecting the premium would provide a total return (exclusive of any dividends) of 29.46% if the option is exercised at expiration on February 21st. However, if JKS shares rise significantly, this strategy could leave some upside potential untapped, highlighting the importance of understanding both historical trading data and business fundamentals.
Below, the charts illustrate the trailing twelve-month trading history for JinkoSolar, showcasing how the $27.50 strike position compares to that performance:
The $27.50 strike represents about a 29% premium over the current trading price, signifying that the call option is out-of-the-money accordingly. There’s a 92% chance this covered call contract could expire worthless, allowing the investor to keep their shares along with the collected premium. Stock Options Channel will also provide ongoing updates on these odds and contract trading history. Should this contract expire worthless, the premium would yield an additional 0.47% boost, or 15.56% annualized, marking another example of the YieldBoost.
Volatility Metrics at a Glance
For the put contract, implied volatility is set at 77%, while the call option shows a higher implied volatility of 94%. In contrast, the actual trailing twelve-month volatility—calculated based on the last 249 trading days and today’s share price at $21.32—stands at 75%. For more insights into additional put and call options, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
- Secondary Stock Offerings
- Institutional Holders of STXK
- RPAY Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
