Options available at Marriott International starting June 7th
Investors in Marriott International, Inc. (symbol: MAR) today noticed new options available for the June 7 expiration.in stock options channelour yield boost formula looked up and down the MAR option chain for the June 7 new contract and identified one put contract and one call contract of particular interest.
The current bid price for a put contract with a strike price of $240.00 is $6.30. If the investor sells the put contract openly, he commits to buying the stock for $240.00, but he also collects a premium, giving the stock a cost basis (before broker commissions) of $233.70. For investors already interested in purchasing MAR stock, this could be an attractive alternative to paying $243.02 per share today.
Because the $240.00 strike price represents approximately a 1% discount to the stock's current trading price (i.e., it is out-of-the-money by that percentage), it is also possible that the put contract will expire worthless. According to current analytical data (including Greek and implied Greek), the probability of such happening is currently 60%. Stock Options Channel tracks how these odds change over time and publishes graphs of those numbers on our website. Contract details page for this contract. If the contract expires worthless, the premium is equivalent to a return of 2.62% on the cash commitment and an annualized return of 22.81%. The stock options channel calls this yield boost.
The chart below shows Marriott International, Inc.'s trading history over the past 12 months and highlights in green where the $240.00 strike is located relative to that history.
Turning to the call side of the option chain, the current bid for a call contract with a strike price of $245.00 is $7.90. If an investor buys his MAR stock at the current price level of $243.02 per share and offers the call contract openly as a “covered call,” the investor sells the stock for his $245.00. We promise that. Considering that the call seller also collects a premium, his total return (excluding dividends, if any) if the stock goes call-away on his June 7 expiry (before broker commissions) is his 4.07 %. Of course, if MAR stock really soars, there could be a lot of upside potential. That's why, in addition to researching the business fundamentals, it's important to look at Marriott International's trading history over the past 12 months. Below is a chart showing MAR's trading history over the past 12 months, with the $245.00 strike highlighted in red.
Given the fact that the $245.00 strike price represents a premium of approximately 1% to the stock's current trading price (in other words, it is out of the money by that percentage), It is also possible that the call contract will be invalidated. If it expires worthless, the investor will retain both the stock and the premium collected. According to current analytical data (including Greek and implied Greek), the probability of such happening is currently 49%. On our website, Contract details page for this contract, the Stock Options Channel tracks these odds over time to see how they change and publishes charts of those numbers (the trading history of option contracts is also charted). If the covered call contract expires worthless, the premium would represent his 3.25% increase in additional income to the investor, or his 28.25% increase on an annualized basis. yield boost.
The put contract example has an implied volatility of 27%, while the call contract example has an implied volatility of 26%.
On the other hand, the actual volatility over the past 12 months (considering the last 251 business days' closing price and today's price of $243.02) is calculated to be 22%. Visit StockOptionsChannel.com for ideas on noteworthy put and call option contracts.
Nasdaq 100 Top Yield Boost Calls »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Summarize this content to 100 words
Investors in Marriott International, Inc. (symbol: MAR) today noticed new options available for the June 7 expiration.in stock options channelour yield boost formula looked up and down the MAR option chain for the June 7 new contract and identified one put contract and one call contract of particular interest.The current bid price for a put contract with a strike price of $240.00 is $6.30. If the investor sells the put contract openly, he commits to buying the stock for $240.00, but he also collects a premium, giving the stock a cost basis (before broker commissions) of $233.70. For investors already interested in purchasing MAR stock, this could be an attractive alternative to paying $243.02 per share today.
Because the $240.00 strike price represents approximately a 1% discount to the stock's current trading price (i.e., it is out-of-the-money by that percentage), it is also possible that the put contract will expire worthless. According to current analytical data (including Greek and implied Greek), the probability of such happening is currently 60%. Stock Options Channel tracks how these odds change over time and publishes graphs of those numbers on our website. Contract details page for this contract. If the contract expires worthless, the premium is equivalent to a return of 2.62% on the cash commitment and an annualized return of 22.81%. The stock options channel calls this yield boost.
The chart below shows Marriott International, Inc.'s trading history over the past 12 months and highlights in green where the $240.00 strike is located relative to that history.
Turning to the call side of the option chain, the current bid for a call contract with a strike price of $245.00 is $7.90. If an investor buys his MAR stock at the current price level of $243.02 per share and offers the call contract openly as a “covered call,” the investor sells the stock for his $245.00. We promise that. Considering that the call seller also collects a premium, his total return (excluding dividends, if any) if the stock goes call-away on his June 7 expiry (before broker commissions) is his 4.07 %. Of course, if MAR stock really soars, there could be a lot of upside potential. That's why, in addition to researching the business fundamentals, it's important to look at Marriott International's trading history over the past 12 months. Below is a chart showing MAR's trading history over the past 12 months, with the $245.00 strike highlighted in red.
Given the fact that the $245.00 strike price represents a premium of approximately 1% to the stock's current trading price (in other words, it is out of the money by that percentage), It is also possible that the call contract will be invalidated. If it expires worthless, the investor will retain both the stock and the premium collected. According to current analytical data (including Greek and implied Greek), the probability of such happening is currently 49%. On our website, Contract details page for this contract, the Stock Options Channel tracks these odds over time to see how they change and publishes charts of those numbers (the trading history of option contracts is also charted). If the covered call contract expires worthless, the premium would represent his 3.25% increase in additional income to the investor, or his 28.25% increase on an annualized basis. yield boost.
The put contract example has an implied volatility of 27%, while the call contract example has an implied volatility of 26%.On the other hand, the actual volatility over the past 12 months (considering the last 251 business days' closing price and today's price of $243.02) is calculated to be 22%. Visit StockOptionsChannel.com for ideas on noteworthy put and call option contracts.
Nasdaq 100 Top Yield Boost Calls »
See also:
• DCP video
• ASIA institutional holders
• DBX videoThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/june-7th-options-now-available-for-marriott-international Options available at Marriott International starting June 7th
