360° Coverage : Interesting EC Put Options For June 21st

2 Updates

Interesting EC Put Options For June 21st

Apr 23 2014, 10:58am CDT | by

Investors in Ecopetrol SA (NYSE: EC) saw new options begin trading today, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the EC options chain...

Filed under: news

 
 
 

22 weeks ago

Interesting EC Put Options For June 21st

Apr 23 2014, 10:58am CDT | by

Investors in Ecopetrol SA (NYSE: EC) saw new options begin trading today, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the EC options chain for the new June 21st contracts and identified the following put contract of particular interest.

The put contract at the $35.00 strike price has a current bid of 10 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $35.00, but will also collect the premium, putting the cost basis of the shares at $34.90 (before broker commissions). To an investor already interested in purchasing shares of EC, that could represent an attractive alternative to paying $36.50/share today.

Because the $35.00 strike represents an approximate 4% 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 56%. 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 0.29% return on the cash commitment, or 1.77% 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 Ecopetrol SA, and highlighting in green where the $35.00 strike is located relative to that history:

The implied volatility in the put contract example above is 43%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today’s price of $36.50) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation from Forbes.
/>/>
 
Update
2

4 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a n ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

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

People with steady heartbeat more prone to stress
Toronto, Oct 1 (IANS) If you have a steady heartbeat when you worry about something that may or may not happen, you might be more susceptible to stress, says a study.
 
 
Novel cardiac patches may replace damaged heart tissues
London, Oct 1 (IANS) Israeli researchers have developed novel cardiac patches made from gold particles that could be transplanted into the body to replace damaged heart tissue.
 
 
Avoid air pollution to manage asthma
Toronto, Oct 1 (IANS) A simple change in your lifestyle to avoid air pollution can help manage ashtha problems, shows a study.
 
 
Cancer detection made simpler with 'virtual breast'
New York, Oct 1 (IANS) To help clinicians better interpret the results of a cancer detection test - ultrasound elastography, researchers have developed what they call a "virtual breast".
 
 
 

Latest from the Network

Novel cardiac patches may replace damaged heart tissues
London, Oct 1 (IANS) Israeli researchers have developed novel cardiac patches made from gold particles that could be transplanted into the body to replace damaged heart tissue. They discovered that gold particles are...
Read more on Business Balla
 
Mayor shot dead by his wife in Los Angeles county
Los Angeles, Oct 1 (IANS) Mayor of Bell Gardens, a town in Los Angeles county, Daniel Crespo died after his wife shot him several times during a domestic dispute, media reported Wednesday. Crespo, 45, was shot Tuesday...
Read more on Politics Balla
 
Mary Kom punches her way to Asiad gold
Incheon, Oct 1 (IANS) India's M.C. Mary Kom punched her way to India's first women's boxing gold in Asian Games, defeating Kazakhstan's Zhaina Shekerbekova in the flyweight (48-51kg) final here Wednesday. Mary, a five...
Read more on Sport Balla
 
Search operations resume at Japan volcano site
Tokyo, Oct 1 (IANS) Search operations resumed Wednesday at the Mount Ontake volcano eruption site in Japan. Rescue teams comprising police, firefighters and self-defence forces have been deployed at the site, Kyodo...
Read more on Politics Balla
 
'Hong Kong must capitalise on one country, two systems'
Hong Kong, Oct 1 (IANS) Hong Kong chief executive C.Y. Leung Wednesday said that in order to sustain its development, the region must capitalise on the combined advantages of the "one country and two systems" approach...
Read more on Politics Balla
 
Avoid air pollution to manage asthma
Toronto, Oct 1 (IANS) A simple change in your lifestyle to avoid air pollution can help manage ashtha problems, shows a study. "Air pollution is known to be associated with worsening asthma symptoms, but sometimes...
Read more on Business Balla
 
Mary Kom strikes Asiad boxing gold
Incheon, Oct 1 (IANS) India's M.C. Mary Kom clinched the gold medal in the women's flyweight (48-51kg) boxing competition of the 17th Asian Games here Wednesday. Mary, a five-time World Champion, defeated Kazakhstan's...
Read more on Sport Balla
 
Cancer detection made simpler with 'virtual breast'
New York, Oct 1 (IANS) To help clinicians better interpret the results of a cancer detection test - ultrasound elastography, researchers have developed what they call a "virtual breast". Like a simulator used to train...
Read more on Business Balla
 
Japan volcano eruption toll mounts to 43
Tokyo, Oct 1 (IANS) The recovery of seven more bodies Wednesday has brought the total number of those dead to 43 following Mount Ontake's volcanic eruption, which occurred Sep 27. Search operations resumed Wednesday...
Read more on Politics Balla
 
Why are Americans more depressed today
Washington, Oct 1 (IANS) US citizens are more depressed now than they have been in decades but most of them are not aware of their conditions, says a new study. Analysing data from 6.9 million adolescents and adults...
Read more on Celebrity Balla