Investors at Meta Platforms Inc (Symbol: META) saw a new option become available today with a November 4th expiration.and Stock option channelour YieldBoost formula examined the META options chain for the new 4 November contracts and identified one put and one call contract of particular interest.
The current bid for the put contract with a strike price of $130.00 is $6.10. If the investor sells the put contract, he commits to buy the stock for $130.00, but also recovers the premium, making the stock’s cost basis he $123.90 (before broker fees). For investors already interested in buying META stock, this could be a more attractive alternative than currently paying $141.37 per share.
A strike of $130.00 represents a discount of about 8% to the current trading price of the stock (i.e. out of the money by that percentage), so the put contract could expire worthless. Current analytical data (including Greek and implied Greek) currently suggests a 99% chance. The Stock Options Channel tracks these odds to see how they change and publishes charts of these numbers on their website. Contract details page for this contractIf the contract expires at no value, the premium would be a 4.69% return on cash commitments, or an annualized rate of 39.83%. yield boost.
Below is a chart showing Meta Platforms Inc’s trading history over the past 12 months, with green highlighting where the $130.00 strike is for that history.
Looking at the call side of the options chain, the current bid for the call contract with a strike price of $155.00 is $5.70. If an investor buys his META shares at his current price level of $141.37/share and opens the call contract as a “covered call,” they sell the shares at his $155.00 I promise to Considering that the seller of the call also recovers the premium, if the stock were called at his Nov. 4 maturity (before brokerage fees), it would have resulted in a total return of 13.67% (excluding dividends, if any). increase. Of course, if META’s stock price surges, it could leave a lot of upside. That is why it is important to study the business fundamentals by looking at Meta Platforms Inc’s trading history over the past 12 months. Below is a chart showing META’s trading history over the past 12 months, with the $155.00 strike highlighted in red.
Considering the fact that a strike of $155.00 represents a premium of about 10% to the current stock trading price (i.e. is out of the money by that percentage), if the covered call contract is then an investment The house will remain with its stock and premium collected. Current analytical data (including Greeks and implied Greeks) currently suggests that chance is 99% for him. 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 a chart of those numbers (the trading history of the option contract is also charted). . If the covered call contract expires at no value, the premium represents his 4.03% increase in additional return to investors, or his 34.22% annualized. yield boost.
On the other hand, the actual volatility over the last 12 months (taking into account the closing prices of the last 252 trading days and today’s price of $141.37) is calculated as 57%. Visit StockOptionsChannel.com for more interesting put and call option contract ideas.
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/interesting-meta-put-and-call-options-for-november-4th Interesting META Put and Call Options on November 4th