New Options Trading for Interactive Brokers Could Offer Strategic Opportunities
Examining the Latest IBKR Put Contract
Investors interested in Interactive Brokers Group Inc – Class A (Symbol: IBKR) have access to new options that began trading this week, set to expire in February 2025. Stock Options Channel has analyzed the options chain and identified a noteworthy put and call contract.
The put contract available at the $175.00 strike price shows a current bid of $8.00. If an investor chooses to sell-to-open this put, they would commit to buying the stock at $175.00, while also collecting the premium. This results in a cost basis of $167.00 per share, before accounting for broker commissions. For those looking to own IBKR shares, this option presents a potentially better deal compared to the current market price of $177.08 per share.
The $175.00 strike price represents around a 1% discount to the current trading price, suggesting that the put contract might expire worthless. Current analytical data indicates a 58% chance of this occurring. Stock Options Channel will continuously monitor these odds and provide updates on their website, aiding investors in their decision-making. If the contract does become worthless, the premium would yield a return of 4.57% on the cash commitment, which translates to an annualized rate of 27.81%, a figure we refer to as the YieldBoost.
Analyzing the Call Contract Opportunities
On the call side of the options chain, a call contract at the $180.00 strike price shows a current bid of $8.50. If an investor buys shares of IBKR at the current price of $177.08 and then sells this call contract as a “covered call,” they would agree to sell the stock at $180.00. With the premium collected, this action could result in a total return of 6.45% if the stock is called away at the February 2025 expiration, not factoring in any dividends or broker commissions.
It’s important to remember that substantial profit potential could be lost if IBKR shares increase significantly, making research into past trading history and corporate fundamentals essential. The following chart depicts IBKR’s trading history, with the $180.00 strike highlighted in red.
The $180.00 strike price also represents about a 2% premium over the current trading price, signifying that this covered call could expire without value as well, allowing investors to retain both their shares and the collected premium. Present analytical data suggest a 50% chance of this happening. Stock Options Channel will also track these odds and provide updates on our website. If the covered call contract expires worthless, the premium represents an additional 4.80% return, or an annualized 29.20%.
The implied volatility for the put contract is currently 35%, while the call contract has an implied volatility of 33%. Meanwhile, actual trailing twelve-month volatility—calculated from the most recent 250 trading days—stands at 26%. For more insights and potential options ideas, check out StockOptionsChannel.com.
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The views and opinions expressed herein represent those of the author and do not necessarily reflect the views of Nasdaq, Inc.
