Ollie’s Bargain Outlet Launches New Options for May Expiration
Investors in Ollie’s Bargain Outlet Holdings Inc (Symbol: OLLI) have new options on the market this week, specifically for the May 16th expiration. Stock Options Channel has utilized its YieldBoost formula to analyze the OLLI options chain, identifying a noteworthy put and call contract.
Put Contract Insights
The put contract at the $110.00 strike price currently has a bid of $4.30. If an investor sells-to-open this put contract, they are agreeing to buy the stock at $110.00, while also collecting the premium. This action effectively reduces the cost basis of the shares to $105.70 prior to any broker commissions. For investors looking to buy OLLI shares, this could be a compelling alternative to paying the current market price of $114.16 per share.
This $110.00 strike price reflects about a 4% discount from the current trading price. Given that the option is out-of-the-money by this margin, there’s a chance the put contract could expire worthless. Analytical data suggests a 61% probability of that outcome occurring. Stock Options Channel will continuously monitor these odds, publishing updates on its website under the relevant contract detail window. If the put contract indeed expires worthless, the premium would yield a 3.91% return based on cash commitment, translating to a 33.97% annualized return—referred to as the YieldBoost.
Ollie’s Trading History
Below is a chart displaying the past twelve months of trading for Ollie’s Bargain Outlet Holdings Inc, focusing on the current position of the $110.00 strike price:
Call Contract Highlights
On the calls side, the $115.00 strike price contract is currently offered with a bid of $5.50. An investor buying shares of OLLI at the existing price of $114.16 per share and selling-to-open this call contract as a “covered call” would commit to selling the stock at $115.00. This approach, while collecting the premium, would generate an overall return—or profit—of 5.55% if the stock is called away by the May 16th expiration (excluding dividends and broker commissions). However, should OLLI shares rise significantly, the investor might miss out on greater profits. This is why reviewing the stock’s trailing twelve-month trading history and analyzing business fundamentals remains essential. Below, the chart illustrates the trading history with the $115.00 strike highlighted in red:
The $115.00 strike price is roughly 1% above the current trading price, meaning this option is also out-of-the-money by this percentage. Consequently, the covered call contract may also expire worthless, allowing the investor to retain both their shares and the premium collected. Current data show a 51% chance of this happening. As with the put contract, Stock Options Channel will also track these odds over time and provide updates on their webpage. Should the covered call expire worthless, the premium would add a 4.82% additional return for the investor, amounting to 41.87% on an annualized basis, labeled another YieldBoost.
Volatility Analysis
The implied volatility for the put contract stands at 43%, while for the call contract it is 44%. In contrast, the trailing twelve-month actual volatility—factored from the last 251 trading days and today’s price of $114.16—is calculated at 40%. For more insightful options contract opportunities, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
See also:
- APF Historical Stock Prices
- Top Ten Hedge Funds Holding MRX
- AVSU Options Chain
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
