Understanding the November 15th Options
Investors eyeing Flowers Foods, Inc. (Symbol: FLO) will have something to toast and chow down on today as new options for the November 15th expiration are up for grabs.
With 269 days until expiration, the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. It’s akin to snagging the ripest peach at the fruit stand, as these options come with a longer shelf life.
Put Contracts and Call Contracts
The put contract at the $22.50 strike price, with a current bid of 60 cents, allows investors to potentially purchase the stock at a discounted price. Selling this put contract could translate to an attractive alternative to paying today’s higher market price.
On the other end, the call contract at the $25.00 strike price, with a current bid of 15 cents, allows investors to consider selling the stock at a higher price come November 15th, potentially securing an impressive total return.
Exploring the Possibilities
Both the put and call contracts open the door to a realm of possibilities for investors, urging them to delve into the thrilling world of stock options. While the put contract at the $22.50 strike may expire worthless, the potential return still stands tall at 2.67%, providing a delectable flavor of profitability for bold investors.
Similarly, the call contract at the $25.00 strike beckons investors with the promise of a juicy 10.07% return, should the stock get called away at the November 15th expiration. However, much like a chef carefully assessing the ripeness of fruit, risk-averse investors will want to carefully study the trailing twelve-month trading history of Flowers Foods, Inc., and the business fundamentals before making a move.
Analyzing the Historical Context
The $22.50 and $25.00 strike prices stand like sentinels, guarding the world of options, offering a gateway to potential profitability. The $25.00 strike, though out-of-the-money by approximately 9%, still presents a tantalizing opportunity to investors, resonating with a note of bullish optimism in the fields of trading.
The analytical data suggests that the odds of these contracts expiring worthless are at 99%, laying out a favorable playing field for investors to indulge their appetites for risk and reward. However, the potential extra return of 0.66% to 2.67% represents a sweetener to the deal, enhancing the overall appeal of these options.
Discover More Opportunities
As investors savor the possibilities served up by these options, the actual trailing twelve-month volatility of 23% adds a dash of excitement and unpredictability to the mix, making it an exhilarating game for those willing to step onto the trading stage.
For more put and call options contract ideas worth exploring, the world of trading beckons investors to visit StockOptionsChannel.com, where a plethora of opportunities await the discerning eye.
Also see:
SMOG Videos
FAT Insider Buying
Funds Holding AIF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
