New Options Trading Opportunity for Warner Bros Discovery Inc Clients
Investors Eye January 2025 Put Contract
Investors interested in Warner Bros Discovery Inc (Symbol: WBD) have new options available for trading as of today, specifically for expiration in January 2025. Stock Options Channel has analyzed the WBD options chain and found a notable put contract worth exploring.
The put contract with a strike price of $9.00 currently has a bid of 8 cents. By selling this put contract, an investor agrees to purchase the stock at $9.00, while collecting the premium, which lowers the effective cost basis to $8.92 per share (before broker commissions). For those considering an investment in WBD shares at the current market price of $10.30 each, this could be an appealing alternative.
Understanding the Discount and Potential Outcomes
With a strike price of $9.00, investors face about a 13% discount compared to the current market price; this means the option is out-of-the-money by that percentage. There’s also a chance that the put contract may expire worthless, with analytical data indicating a 73% probability of that occurring. Stock Options Channel will monitor these odds as time progresses, providing updates via their website.
If the contract does expire worthless, the premium gained would yield a 0.89% return on the initial cash commitment, translating to an annualized return of 7.37%. This concept is referred to as YieldBoost by Stock Options Channel.
In the chart below, we display the trading history for Warner Bros Discovery Inc over the past twelve months, highlighting where the $9.00 strike price stands in relation to that history:
The implied volatility for the put contract amounts to 50%. In contrast, our calculation of the trailing twelve-month volatility, which includes the last 252 trading days and considers the present price of $10.30, is about 48%. To explore more opportunities with put and call contracts, visit StockOptionsChannel.com.
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Also see:
- Stocks with Recent Secondaries That Hedge Funds Are Buying
- EMR YTD Return
- SIR YTD Return
The views and opinions expressed herein are the viewpoints of the author and do not necessarily represent those of Nasdaq, Inc.
