Unveiling Opportunities
Investors eyeing MicroStrategy Inc. (Symbol: MSTR) were presented with a fresh set of options today, set to expire on May 3rd. The seasoned experts at Stock Options Channel meticulously combed through the MSTR options chain, pinpointing a put contract that stands out amid the crowd.
The Intriguing Put Contract
The put contract residing at the $1520.00 strike price beckons with a tempting bid of $248.65. By selling-to-open this put contract, investors agree to acquire the stock at $1520.00. However, they also glean the premium, essentially pegging the cost basis of the shares at $1271.35 (before broker commissions). For those eager to scoop up MSTR shares, this alternative could be music to their ears, a sweet melody amid the cacophony of a tumultuous market.
A Siren Call to Investors
Diving deeper, the $1520.00 strike showcases an enticing 10% markdown from the prevailing trading price (i.e., it is out-of-the-money by that margin), potentially leading to the put contract expiring worthless. Current analytics, adorned with greeks and implied greeks, tip the scales with a 65% likelihood of such an outcome. Stock Options Channel remains vigilant, poised to chart the shifting odds over time. In the event of worthlessness, the premium would translate to a 16.36% return on the cash commitment, a staggering 138.86% annualized return — in our parlance, the revered YieldBoost.
A Visual Voyage
Venture below to behold a chart unfurling the trailing twelve-month trading saga of MicroStrategy Inc., illuminating in vivid green where the $1520.00 strike nestles within this historical tapestry.
Volatility Odyssey
In the put contract anecdote above, the implied volatility stands at a lofty 143%. In contrast, the authentic trailing twelve-month volatility, pondering the last 251 trading day closures alongside today’s $1680.00 price, unfurls at 83%. For a treasure trove of put and call options contract musings, meander over to StockOptionsChannel.com.
Top YieldBoost Puts of Stocks Conducting Buybacks
Also see:
IOT YTD Return
CPAQ YTD Return
Institutional Holders of NQU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
