New Covered Call Opportunity for ArcelorMittal Investors
Investors in ArcelorMittal SA (Symbol: MT) can now explore new options set to expire on May 30th. At Stock Options Channel, our YieldBoost formula has examined the MT options chain and identified a noteworthy call contract.
Details of the Call Contract
The call contract with a $32.00 strike price currently has a bid of 10 cents. If an investor purchases shares of MT at the present price of $25.78 per share and sells that call contract as a “covered call,” they are agreeing to sell the stock at $32.00. Assuming the stock is called away at expiration, the total return—excluding dividends—would be 24.52% (before broker commissions). However, should MT shares increase significantly, some upside potential could be missed. Understanding MT’s trading history and business fundamentals is essential for informed decision-making.
Market Context and Premium Analysis
The $32.00 strike price is approximately 24% above the current trading price of the stock, indicating that it is out-of-the-money by that percentage. Consequently, there is a possibility the covered call contract could expire worthless, allowing the investor to retain both their stock and the premium collected. Current analytical data, including Greeks and implied Greeks, indicate an 83% probability of this outcome. Our Stock Options Channel will track these odds over time, presenting a chart of the option contract’s trading history as well.
Should the covered call contract expire without being exercised, the premium would provide a 0.39% increase in returns for the investor, or 2.83% annualized, known as the YieldBoost.
Volatility Insights
The implied volatility for the aforementioned call contract is 44%. In contrast, the actual trailing twelve-month volatility—considering the last 251 trading day’s closing values alongside today’s price of $25.78—stands at 40%. For additional put and call options ideas worth investigating, visit StockOptionsChannel.com.
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also see:
- Hedge Fund Activity Among Individual Components
- Institutional Holders of GWAV
- MSG Market Cap History
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
