New Options Opportunities for Marathon Digital Investors
Options for Marathon Digital Holdings Inc (Symbol: MARA) have expanded with new contracts available for the December 6th expiration date. At Stock Options Channel, we’ve analyzed the MARA options chain and pinpointed two standout contracts: one put and one call.
The put contract at the $18.00 strike price currently bids at $1.90. If an investor chooses to sell-to-open this put contract, they would commit to buy the stock at $18.00 while receiving the premium, effectively lowering their cost basis to $16.10 (not including broker commissions). For those looking to acquire shares of MARA, this option offers a compelling alternative to buying at today’s price of $18.76 per share.
The $18.00 strike price is approximately a 4% discount from the current stock price, indicating the put option may expire worthless. Analytical data suggests there is a 63% chance of that occurring. Stock Options Channel will continue to monitor these odds over time and update our website with this information. Should the contract indeed expire worthless, the premium would yield a 10.56% return on the cash commitment or an impressive 89.51% annualized — a phenomenon we’ve termed YieldBoost.
Below is a chart that displays the trading history for Marathon Digital Holdings Inc over the past twelve months, highlighting where the $18.00 strike price falls within that timeframe.
Turning to the calls, the call contract at the $19.00 strike price is currently bidding at $2.63. If an investor buys shares of MARA stock at the current price of $18.76 per share and simultaneously sells-to-open this call contract as a “covered call,” they agree to sell the stock for $19.00. Including the premium collected, this scenario would yield a total return of 15.30% if the stock is called away at the December 6th expiration (before broker commissions). However, if the stock price significantly increases, some upside potential may be missed, underscoring the importance of examining historical trading patterns and the company’s fundamentals. The chart below illustrates MARA’s trading history, highlighting the $19.00 strike in red.
The $19.00 strike represents approximately a 1% premium over the current stock price, meaning there’s a likelihood the covered call might also expire worthless. In this case, investors would keep both their stock and the premium earned. Current analytical data indicate a 43% chance of this outcome. Such tracking of odds for these contracts will be available on our website, along with a historical overview of the options trading. If the covered call contract does expire worthless, the premium would provide a 14.02% boost to investor returns, or 118.88% annualized — again referred to as YieldBoost.
The implied volatility for the put contract is at 106%, while the call contract shows an implied volatility of 104%. Our calculations also reveal the actual trailing twelve-month volatility, based on the last 251 trading days and the current price of $18.76, to be 103%. For more insights on additional put and call options contracts, please visit StockOptionsChannel.com.
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Also see:
- TU Split History
- TFC Dividend History
- SPXB Shares Outstanding History
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
