360° Coverage : RTN June 21st Options Begin Trading

10 Updates

RTN June 21st Options Begin Trading

Apr 21 2014, 11:38am CDT | by

Investors in Raytheon Co. (NYSE: RTN) saw new options become available today, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the RTN options...

Filed under: news

 
 
 

14 weeks ago

RTN June 21st Options Begin Trading

Apr 21 2014, 11:38am CDT | by

Investors in Raytheon Co. (NYSE: RTN) saw new options become available today, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the RTN options chain for the new June 21st contracts and identified one put and one call contract of particular interest.

The put contract at the $100.00 strike price has a current bid of $2.62. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $100.00, but will also collect the premium, putting the cost basis of the shares at $97.38 (before broker commissions). To an investor already interested in purchasing shares of RTN, that could represent an attractive alternative to paying $100.54/share today.

Because the $100.00 strike represents an approximate 1% 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 52%. 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 2.62% return on the cash commitment, or 15.68% 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 Raytheon Co., and highlighting in green where the $100.00 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $105.00 strike price has a current bid of $1.31. If an investor was to purchase shares of RTN stock at the current price level of $100.54/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $105.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.74% if the stock gets called away at the June 21st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if RTN shares really soar, which is why looking at the trailing twelve month trading history for Raytheon Co., as well as studying the business fundamentals becomes important. Below is a chart showing RTN’s trailing twelve month trading history, with the $105.00 strike highlighted in red:

Considering the fact that the $105.00 strike represents an approximate 4% 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 71%. 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 1.30% boost of extra return to the investor, or 7.80% 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 18%, while the implied volatility in the call contract example is 20%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today’s price of $100.54) to be 18%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

 
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 De ...
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 b ...
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 Rakyat today. ...
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 Se ...
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 month. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

8 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 million in co ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

8 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 Minist ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 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 all ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 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 Bazaar Scheme 2 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 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 S ...
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

WTO fails to reach trade facilitation agreement
Geneva, Aug 2 (IANS) Negotiations at the World Trade Organisation(WTO) has failed to agree on the implementation of the trade facilitation agreement as the deadline of July 31 passed.
 
 
Liberia reports new Ebola cases
Lagos, Aug 1 (IANS) The Liberian government has reported new Ebola cases as of July 28.
 
 
Japanese men's life expectancy over 80 years for first time
Tokyo, Aug 1 (IANS/EFE) The life expectancy of Japanese men stood at 80.21 years in 2013, the first time that men have gone past the 80-year mark in the Asian country, according to the country's ministry of health, labour and welfare.
 
 
Methane created mysterious Siberian crater: Study
London, Aug 1 (IANS) The mysterious crater spotted in the frozen Yamal peninsula in Siberia earlier this month was probably caused by methane released as permafrost thawed, Russian researchers say.
 
 
 

Latest from the Network

Commonwealth Games medals tally
Glasgow, Aug 2 (IANS) England lead the medals tally Friday at the 20th Commonwealth Games with 47 golds, 46 silvers and 43 bronzes followed by Australia and Canada. India are still fifth with a tally of 49 medals,...
Read more on Sport Balla
 
How John Legend coped with parents' divorce?
Los Angeles, Aug 2 (IANS) Singer John Legend credits his teachers for helping him cope with his parents' divorce and for motivating him to complete his Ivy League education. "I was 10 years old when my parents got...
Read more on Celebrity Balla
 
Kerry condemns violation of Gaza ceasefire
Washington, Aug 2 (IANS) US Friday condemned Friday the killing of Israeli soldiers and apparent abduction of another by the Palestinian militants that violated the ceasefire. "It was an outrageous violation of the...
Read more on Politics Balla
 
Gurusaidutt leads Indian shuttlers into semis
Glasgow, Aug 2 (IANS) Indian shuttler R.M.V. Gurusaidutt came out with a brilliant performance to oust Malaysian top seed Chong Wei Feng and enter the men's singles semi-finals of the Commonwealth Games here Friday....
Read more on Sport Balla
 
Discus thrower Seema earns silver, pugilist Pinki bronze (Roundup)
Glasgow, Aug 2 (IANS) Woman discus thrower Seema Punia grabbed a silver, boxer Pinki Jangra brought home a bronze, while pugilists and paddlers assured the nation of at least three more silver medals on day eight of...
Read more on Sport Balla
 
Four Indian boxers in final, Pinki takes bronze (Roundup)
Glasgow, Aug 2 (IANS) Four Indian boxers -- L. Sarita Devi, L. Devendro Singh, Mandeep Jangra and Vijender Singh -- made it into their respective gold medal bouts after Pinki Jangra lost her semi-final to settle for...
Read more on Sport Balla
 
Sharath-Amalraj settle for silver (Table Tennis Roundup)
Glasgow, Aug 2 (IANS) Veteran Achanta Sharath Kamal and Anthony Amalraj picked up the silver medal in the men's doubles table tennis after they lost 1-3 to Singapore's Hu Li and Ning Gao in the title clash of the 2014...
Read more on Sport Balla
 
Pallikal-Chinappa enter women's doubles squash finals (Roundup)
Glasgow, Aug 2 (IANS) India's star squash players Dipika Pallikal and Joshana Chinappa lived up to their names and potential to enter the women's doubles final at the Commonwealth Games here Friday. The Indian duo...
Read more on Sport Balla
 
Indian medal winners at the Commonwealth Games
Glasgow, Aug 2 (IANS) The following is the list of Indian medal winners at the 2014 Commonwealth Games here: Gold: Sanjita Khumukchan: women's 48 kg weightlifting Sukhen Dey: men's 56 kg weightlifting Abhinav Bindra:...
Read more on Sport Balla
 
Keith Urban reacts to ill-fated Massachusetts concert
Los Angeles, Aug 2 (IANS) Singer Keith Urban has broken his silence about his recent ill-fated concert in Massachusetts, where dozens of hospitalized fans and an arrest made for an alleged rape. "My team and I were...
Read more on Celebrity Balla