Equinix Options Open Up New Investment Opportunities

New February 2025 Options Offer Investors Attractive Strategies

Investors in Equinix Inc (Symbol: EQIX) welcomed new options this week, set to expire in February 2025. Using its YieldBoost formula, Stock Options Channel has identified notable contracts on the EQIX options chain, focusing on one put and one call contract that could pique interest.

The highlighted put contract features a strike price of $910.00, currently fetching a bid of $24.60. If an investor sells to open this put contract, they agree to buy shares at $910.00 and receive the premium, effectively lowering their cost basis to $885.40 (excluding broker commissions). To those eyeing EQIX at its current price of $928.05 per share, this option provides a compelling alternative.

Given that the $910.00 strike price is about 2% below the current stock price, there’s a risk that the put may expire worthless. Current estimates suggest a 61% chance of this outcome. Stock Options Channel will continue to monitor and update these odds on its website, where they’ll be available under the contract detail page. If the put expires worthless, the premium would yield a 2.70% return on the cash commitment, translating to an annualized return of 16.45%—what we call the YieldBoost.

Below, you’ll find a chart showing Equinix Inc’s trading history over the past twelve months, with the $910.00 strike price indicated in green:

On the call options side, a contract with a $950.00 strike price has a current bid of $28.50. An investor buying shares of EQIX at the ongoing price of $928.05 per share could sell this call as a “covered call,” agreeing to sell at $950.00. If successful, this strategy would provide a total return of 5.44% (not including dividends) if the stock is called away by February 2025 (excluding broker commissions). However, it’s important to note that significant upside potential could be missed if EQIX shares appreciate substantially. Hence, reviewing the past twelve months of trading data and the company’s fundamentals is vital.

Here is a chart of EQIX’s past twelve months with the $950.00 strike price highlighted in red:

The $950.00 strike is about 2% above the current stock price, suggesting there’s a chance this covered call could also expire worthless. In this case, the investor keeps their shares and the premium received. Current analytics indicate a 55% chance of this happening. Stock Options Channel will track these odds, providing updates on its website, along with a history chart of the option contract. Should the call expire worthless, the premium would add a return of 3.07% to the investor’s gains, or an annualized rate of 18.68%, also referred to as the YieldBoost.

The put contract’s implied volatility is recorded at 26%, while the call contract’s implied volatility stands at 27%. In addition, the actual trailing twelve-month volatility, calculated from the last 250 trading days along with today’s price of $928.05, is 24%. For more insights into put and call options, consider visiting StockOptionsChannel.com.

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Also see:

• Institutional Holders of NK
• Institutional Holders of EZJ
• Institutional Holders of SURF

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.