New Options Unveiled for Moelis & Company: Key Insights

Investors in Moelis & Company Class A (Symbol: MC) discovered new options trading commencing this week, set to expire on June 20th. Using our YieldBoost formula, Stock Options Channel identified one notable put contract and one call contract within the MC options chain.

Put Contract Analysis

The put contract at the $45.00 strike price currently holds a bid of $1.25. By selling-to-open this put contract, an investor commits to buying the shares at $45.00, while also collecting the premium. This arrangement effectively lowers the cost basis to $43.75 per share (excluding broker commissions). For investors interested in acquiring MC shares, this could present an appealing alternative to purchasing at the current market price of $50.60 per share.

The $45.00 strike price represents an approximate 11% discount from the current trading price. As a result, the possibility exists that this put contract may expire worthless. Current analytical data, including greeks and implied greeks, indicate a 69% likelihood of this outcome. Stock Options Channel will monitor these odds over time and publish updates on our website’s contract detail page. Should the put contract expire worthless, the premium would yield a 2.78% return on the cash commitment or 17.18% annualized—referred to as the YieldBoost.

Historical Trading Context

Below is a chart illustrating Moelis & Company’s trailing twelve-month trading history, with the $45.00 strike highlighted in green:

Call Contract Insights

Shifting focus to the call option side, the $55.00 strike price call contract currently bids at 55 cents. Should an investor purchase MC shares at the prevailing price of $50.60 each and then sell-to-open this call contract, they would agree to sell the shares at $55.00. By collecting the premium, this could yield a total return (excluding dividends) of 9.78% if the stock is called away at the June 20th expiration. However, potential upside remains if MC shares appreciate significantly.

To truly evaluate this opportunity, it’s crucial to examine Moelis & Company’s trailing twelve-month trading history and assess the company’s fundamentals. Below is a chart showing MC’s trading history, with the $55.00 strike highlighted in red:

The $55.00 strike indicates an approximate 9% premium compared to the current trading price. Thus, there exists a chance that the covered call contract may expire worthless, allowing the investor to retain both their shares and the collected premium. Current analytical insights reveal a 66% likelihood of this scenario. Stock Options Channel will continue to track these odds and provide updates on our website, including the trading history of the option contract. Should the covered call contract expire worthless, the premium would represent a 1.09% boost to the investor’s returns, or 6.72% annualized, also termed as the YieldBoost.

Volatility Insights

The implied volatility for the put contract stands at 62%, while for the call contract, it is at 51%. Meanwhile, our calculations reveal the actual trailing twelve-month volatility—assessing the last 250 trading day closing values and today’s price of $50.60—to be 41%. For additional options contract ideas worth exploring, visit StockOptionsChannel.com.

Top YieldBoost Calls of the S&P 500 »

Explore More:

• Selling Calls For Income
• DECK 13F Filers
• ETFs Holding FDX

The views expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.