New Options for Linde PLC Offer Traders Potential Opportunities
Investors in Linde PLC (Symbol: LIN) can now explore new options expiring on August 15th. With 94 days remaining until expiration, these newly available contracts provide a chance for sellers of puts or calls to secure higher premiums than those offered by contracts with shorter expirations.
The Stock Options Channel’s YieldBoost formula has scanned the LIN options chain, revealing a noteworthy put and call contract for consideration.
Put Contract Insights
The put contract at a $450.00 strike price currently has a bid of $12.50. If an investor sells to open this put contract, they commit to buying the Stock at $450.00 but also receive the premium. This lowers the effective purchase cost of the shares to $437.50 (excluding broker commissions). For those already looking to purchase LIN shares at the current price of $454.87, this presents a potentially attractive alternative.
Notably, the $450.00 strike price reflects about a 1% discount to today’s trading price. Therefore, there is a chance that the put contract may expire worthless. Current analytical data suggests a 59% probability of that outcome. The Stock Options Channel will monitor these odds over time, offering ongoing updates on our website’s contract detail page. Should the put contract expire worthless, the premium would yield a return of 2.78% on the cash commitment, equating to an annualized return of 10.79%, a metric we term the YieldBoost.
Call Contract Insights
On the call side, the contract at a $460.00 strike price has a bid of $14.60. If an investor buys shares of LIN at the current price of $454.87 and subsequently sells to open this call contract as a “covered call,” they agree to sell the Stock at $460.00. Including the collected premium, this strategy could generate a total return of 4.34% if the shares are called away at expiration (excluding any dividends and broker commissions). However, considerable upside may be missed if LIN shares increase significantly, underscoring the importance of analyzing Linde PLC’s trading history and fundamental business metrics.
The following chart illustrates LIN’s trailing twelve-month trading history, highlighting the $460.00 strike price in red:
Considering the $460.00 strike price is roughly 1% above the current trading price, there is also a risk the covered call might expire worthless, allowing the investor to retain both their shares and the premium. Current data indicates a 50% likelihood of this outcome. The Stock Options Channel will continue to track these odds, offering charts of the related trading history on our website. If the covered call contract does expire worthless, the premium would yield a boost of 3.21% to the investor’s returns, or 12.46% annualized, which we also classify as a YieldBoost.
Volatility Metrics
The implied volatility for the put contract stands at 20%, while the call contract’s implied volatility is 19%. In comparison, the actual trailing twelve-month volatility, based on the last 250 trading day closing values and the current price of $454.87, is calculated at 18%. For further insights into additional put and call options worth examining, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
