HomeMarket NewsUnlocking Opportunity With LIN September 20th Options Trading

Unlocking Opportunity With LIN September 20th Options Trading

Actionable Trade Ideas

always free

Diving into LIN’s Options: A Market Outlook

Today marks a significant day for investors eyeing Linde PLC (Symbol: LIN) as new options have hit the market, expiring on September 20th. With 186 days until expiration, these fresh contracts come bearing the gift of time value. For those venturing into the world of puts and calls, these options present a unique chance to garner a juicier premium than the contracts with a closer expiration.

Capitalizing on Potential Gains

Taking a closer look at the options chain, we spot a put contract at the $470.00 strike price, boasting a current bid of $18.10. Selling-to-open this put contract binds one to buy the stock at $470.00. However, in return, the premium collected shaves the cost basis of the shares down to $451.90 β€” a bargain compared to today’s share price of $473.28. This deal may certainly catch the eye of investors seeking LIN shares.

Navigating Risk and Reward

Exploring further, we find the $470.00 strike sitting at an approximate 1% markdown from the current stock price, hinting at its out-of-the-money status. Statistical data project a 60% likelihood of the put contract expiring worthless, implying a potential 3.85% return on the cash commitment.

Visualizing the Journey

A glimpse at LIN’s twelve-month trading history paints a vivid picture of its ups and downs. The $470.00 strike appears strategically placed amidst this chart, offering a reference point for opportunistic investors.

Exploring Call Options: A Balancing Act

Shifting focus to call contracts, the $490.00 strike beckons with a current bid of $20.50. Engaging in a β€œcovered call” strategy at this level entails selling the stock at $490.00 if shares are called away by the September 20th expiration, resulting in a potential 7.86% total return (excluding dividends) for the call seller.

Evaluating Upside Potential

At a 4% premium to the current stock price, the $490.00 strike flirts with being out-of-the-money. Analytical data forecast a 52% chance of the covered call expiring worthless, offering investors a 4.33% boost in return and an 8.50% annualized yield, aka the YieldBoost.

Combating Volatility

Implied volatility in both put and call contracts hovers around 19%. Meanwhile, the actual trailing twelve-month volatility stands at 16%, providing a solid backdrop for strategic decision-making in the options market.

Seeking Further Insights

For more intriguing put and call options, delve into StockOptionsChannel.com. Your gateway to navigating the dynamic world of options trading with finesse and foresight.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.