10 Updates
March 22nd Options Now Available For Dominion Resources (D)

March 22nd Options Now Available For Dominion Resources (D)

Jan 21 2014, 10:51am CST | by

Investors in Dominion Resources Inc (NYSE: D ) saw new options become available today, for the March 22nd expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the D...

Filed under: news

 
 
 

26 weeks ago

March 22nd Options Now Available For Dominion Resources (D)

Jan 21 2014, 10:51am CST | by

Investors in Dominion Resources Inc (NYSE: D ) saw new options become available today, for the March 22nd expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the D options chain for the new March 22nd contracts and identified one put and one call contract of particular interest.

The put contract at the $65.0 strike price has a current bid of $1.20. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $65.0, but will also collect the premium, putting the cost basis of the shares at $63.80 (before broker commissions). To an investor already interested in purchasing shares of D, that could represent an attractive alternative to paying $66.63/share today.

Because the $65.0 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.85% return on the cash commitment, or 11.24% annualized — at Stock Options Channel we call this the YieldBoost.

Click here to find out the Top YieldBoost Puts of the S&P 500 »

Below is a chart showing the trailing twelve month trading history for Dominion Resources Inc, and highlighting in green where the $65.0 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $67.5 strike price has a current bid of $1.05. If an investor was to purchase shares of D stock at the current price level of $66.63/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $67.5. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.88% if the stock gets called away at the March 22nd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if D shares really soar, which is why looking at the trailing twelve month trading history for Dominion Resources Inc, as well as studying the business fundamentals becomes important. Below is a chart showing D’s trailing twelve month trading history, with the $67.5 strike highlighted in red:

Considering the fact that the $67.5 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.58% boost of extra return to the investor, or 9.59% annualized, which we refer to as the YieldBoost.

Click here to find out the Top YieldBoost Calls of the S&P 500 »

The implied volatility in the put contract example is 17%, while the implied volatility in the call contract example is 16%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today’s price of $66.63) to be 14%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

Source: Forbes Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dew ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakya ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin Hussein ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last mont ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an alloca ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Facebook 'forcing' messenger app users
Washington, July 29 (IANS) Soon, you will be "forced" to download and use Facebook messenger app as you log on to the popular social networking site.
 
 
Effective oral contraceptives for obese women soon
New York, July 29 (IANS) Obese women who use oral contraceptives to prevent pregnancy can now heave a sigh of relief as researchers have identified ways to make birth control pills more effective.
 
 
Wireless cooling: Magnets to keep your fridge cool
New York, July 29 (IANS) Magnets may soon act as wireless cooling agents for your refrigerators, laptops and other devices if a theory propounded by researchers at Massachusetts Institute of Technology in the US finds application.
 
 
Human-induced water vapour next climate threat
New York, July 29 (IANS) The rising levels of water vapour in the upper troposphere - a key amplifier of global warming - owing to greenhouse gases will intensify climate change impacts over the next decades, scientists said.
 
 
 

Latest from the Network

Kazakh volleyballer becomes new Internet sensation
Almaty, July 29 (IANS) It took just a few days for Sabina Altynbekova, an under-19 female volleyball player from Kazakhstan, to hit stardom. After some performances during a youth tournament in Taipei last week, the...
Read more on Sport Balla
 
Indian para-swimmer Gayakwad misses out on bronze
Glasgow, July 29 (IANS) Indian para-swimmer Sharath Gayakwad missed out on the men's 200-metre individual medley SM8 bronze finishing fourth in the final of the event at the Tollcross Swimming Centre here in the...
Read more on Sport Balla
 
Lens returns to French Ligue 1
Paris, July 29 (IANS) Lens football club were promoted to the top flight, French Ligue 1, after successfully appealing a ban on financial grounds. Lens were banned from the Ligue 1 after failing to produce the...
Read more on Sport Balla
 
Sharadha fails to qualify for women's 100m finals
Glasgow, July 29 (IANS) Indian athlete Narayana Sharadha failed to qualify for the women's 100 metres final at the Commonwealth Games here. The 27-year-old Chennai-born finished sixth out of seven competitors in the...
Read more on Sport Balla
 
Cleanliness, punctuality Modi's mantra: Chinese daily
Beijing, July 29 (IANS) New vigour is sweeping through Indian government offices after Narendra Modi became the prime minister with ministers conducting surprise checks to see if bureaucrats are in their seats in time...
Read more on Politics Balla
 
MH17 investigators fail to reach crash site
Canberra, July 29 (IANS) Australian and Dutch investigators have failed for a third consecutive day to reach the MH17 crash site because of fierce fighting between Ukrainian troops and pro-Russian separatists,...
Read more on Politics Balla
 
Indian nurses now caught in Libyan conflict
New Delhi, July 29 (IANS) In a near replay of the incidents in Iraq, a large number of Indian nurses are caught amid spiralling violence in Libya, where rival militias seek to control the capital's international...
Read more on Politics Balla
 
Audrina Patridge splits from boyfriend
Audrina Patridge has split from her boyfriend. The reality TV star and Australian BMX rider Corey Bohan have split for good after five years of dating and though they have parted ways previously, insiders don't believe...
Read more on Celebrity Balla
 
Robert Downey Jr. excited to shop for baby
Robert Downey Jr. can't wait to go shopping for his baby daughter. The 49-year-old actor and wife Susan Levin will welcome a little girl into the world in November and he is planning to shower the latest edition to his...
Read more on Celebrity Balla
 
Joe Manganiello struggled to understand Sofia's Colombian family
Joe Manganiello found it difficult to understand Sofia Vergara's Colombian family when she introduced them over the weekend. The 'Modern Family' actress and the 'True Blood' star, who started dating earlier this month,...
Read more on Celebrity Balla