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.