HomeMarket News Exploring WYNN May 3rd Options Trading Opportunities

Exploring WYNN May 3rd Options Trading Opportunities

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Diving into New Options Trading for May 3rd

Investors in Wynn Resorts Ltd (WYNN) are witnessing the commencement of trading for new options with a May 3rd expiration. At Stock Options Channel, our YieldBoost formula meticulously examines the WYNN options chain for these contracts. Today, one put and one call contract have particularly piqued our interest.

Exploring Put and Call Contract Opportunities

The put contract at the $100.00 strike price is currently bid at $2.95. By selling-to-open this put contract, an investor commits to acquiring the stock at $100.00 while also receiving the premium, effectively setting the cost basis of the shares at $97.05. For an investor eyeing WYNN shares, this presents an appealing alternative to the current market price of $101.10 per share.

Unlocking the Potential with Options

With the $100.00 strike representing a 1% discount to the current trading price, the put contract may expire worthless. Analytical data indicates a 60% chance of this outcome. Stock Options Channel will monitor these odds over time, displaying the progress on our website. Should the contract expire fruitless, the premium translates to a cash commitment yielding 2.95% return or 25.04% annualized – what we fondly term the YieldBoost.

Below, observe a chart displaying the trailing twelve months trading history for Wynn Resorts Ltd. The $100.00 strike is highlighted in green against this backdrop, offering a visual representation of its relation to past performance.


Maximizing Returns with Covered Calls

On the calls side of the option chain, the call contract at the $102.00 strike bears a current bid of $3.90. Should an investor purchase WYNN shares at $101.10 per share and proceed to sell-to-open the call contract, they commit to selling the stock at $102.00. This maneuver, known as a β€œcovered call,” offers a total return of 4.75% if the shares are called away at the May 3rd expiration.

Forecasting Potential Outcomes

Given that the $102.00 strike represents a 1% premium to the current trading price, there is a chance the covered call contract may expire worthless. Current data suggests a 47% probability of this event. Stock Options Channel will continuously review these odds, highlighting the progress on our website. If the covered call contract expires without value, the premium provides an extra return boost of 3.86% to the investor, or 32.74% annualized – a phenomenon we dub the YieldBoost.

Implied volatility for the put contract example stands at 32%, while the call contract example boasts 34% implied volatility. Meanwhile, the actual trailing twelve-month volatility, pegged at 30%, paints a comprehensive picture of the stock’s recent performance in relation to current pricing.

For additional insights into put and call options contract ideas, delve into StockOptionsChannel.com.

nslideshowTop YieldBoost Calls of the S&P 500 Β»

Also see:

Β• Secondary Stock Offerings

Β• AOS Dividend History


The opinions shared here are those of the author and do not necessarily reflect Nasdaq, Inc.’s perspectives.

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