360° Coverage : First Week of GRMN June 21st Options Trading

2 Updates

First Week of GRMN June 21st Options Trading

Apr 23 2014, 11:20am CDT | by

Investors in Garmin Ltd. (NASD: GRMN) saw new options become available this week, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GRMN...

Filed under: news

 
 
 

20 weeks ago

First Week of GRMN June 21st Options Trading

Apr 23 2014, 11:20am CDT | by

Investors in Garmin Ltd. (NASD: GRMN) saw new options become available this week, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GRMN options chain for the new June 21st contracts and identified one put and one call contract of particular interest.

The put contract at the $55.00 strike price has a current bid of $2.25. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $55.00, but will also collect the premium, putting the cost basis of the shares at $52.75 (before broker commissions). To an investor already interested in purchasing shares of GRMN, that could represent an attractive alternative to paying $56.06/share today.

Because the $55.00 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 57%. 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 4.09% return on the cash commitment, or 25.31% annualized — at Stock Options Channel we call this the YieldBoost.

Click here to find out the Top YieldBoost Puts of the Nasdaq 100 »

Below is a chart showing the trailing twelve month trading history for Garmin Ltd., and highlighting in green where the $55.00 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $57.50 strike price has a current bid of $1.75. If an investor was to purchase shares of GRMN stock at the current price level of $56.06/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $57.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.69% 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 GRMN shares really soar, which is why looking at the trailing twelve month trading history for Garmin Ltd., as well as studying the business fundamentals becomes important. Below is a chart showing GRMN’s trailing twelve month trading history, with the $57.50 strike highlighted in red:

Considering the fact that the $57.50 strike represents an approximate 3% 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 58%. 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 3.12% boost of extra return to the investor, or 19.31% annualized, which we refer to as the YieldBoost.

Click here to find out the Top YieldBoost Calls of the Nasdaq 100 »

The implied volatility in the put contract example is 30%, while the implied volatility in the call contract example is 28%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today’s price of $56.06) to be 26%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

 
Update
2

2 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 ne ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 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
 

 

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<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.

 

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First Week of GRMN June 21st Options Trading - Business Balla
 

360° Coverage : First Week of GRMN June 21st Options Trading

2 Updates

First Week of GRMN June 21st Options Trading

Apr 23 2014, 11:20am CDT | by

Investors in Garmin Ltd. (NASD: GRMN) saw new options become available this week, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GRMN...

Filed under: news

 
 
 

20 weeks ago

First Week of GRMN June 21st Options Trading

Apr 23 2014, 11:20am CDT | by

Investors in Garmin Ltd. (NASD: GRMN) saw new options become available this week, for the June 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GRMN options chain for the new June 21st contracts and identified one put and one call contract of particular interest.

The put contract at the $55.00 strike price has a current bid of $2.25. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $55.00, but will also collect the premium, putting the cost basis of the shares at $52.75 (before broker commissions). To an investor already interested in purchasing shares of GRMN, that could represent an attractive alternative to paying $56.06/share today.

Because the $55.00 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 57%. 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 4.09% return on the cash commitment, or 25.31% annualized — at Stock Options Channel we call this the YieldBoost.

Click here to find out the Top YieldBoost Puts of the Nasdaq 100 »

Below is a chart showing the trailing twelve month trading history for Garmin Ltd., and highlighting in green where the $55.00 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $57.50 strike price has a current bid of $1.75. If an investor was to purchase shares of GRMN stock at the current price level of $56.06/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $57.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.69% 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 GRMN shares really soar, which is why looking at the trailing twelve month trading history for Garmin Ltd., as well as studying the business fundamentals becomes important. Below is a chart showing GRMN’s trailing twelve month trading history, with the $57.50 strike highlighted in red:

Considering the fact that the $57.50 strike represents an approximate 3% 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 58%. 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 3.12% boost of extra return to the investor, or 19.31% annualized, which we refer to as the YieldBoost.

Click here to find out the Top YieldBoost Calls of the Nasdaq 100 »

The implied volatility in the put contract example is 30%, while the implied volatility in the call contract example is 28%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today’s price of $56.06) to be 26%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

 
Update
2

2 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 ne ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 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

Vietnamese kill five mn dogs for food annually
Bangkok, Sep 15 (IANS/EFE) The people of Vietnam slaughter at least five million dogs for food in a year, a figure only surpassed by China in the entire Asian continent, Vietnamese media reported Monday.
 
 
Jordan to get 193 mn euros as German aid
Amman, Sep 15 (IANS) Germany Monday announced it will provide 193 million euros in assistance to Jordan, state media here reported.
 
 
Chinese firm to build fertiliser factory in Jordan
Amman, Sep 15 (IANS) A Chinese company is all set to build a fertiliser factory in Jordan, following an MoU signed between Jordan Phosphate Mines Co. and China's Chongqing Minmetal and Machinery Import and Export Co. Ltd., state media reported Monday.
 
 
Malaysia to donate 20 mn gloves for Ebola affected
Kuala Lumpur, Sep 15 (IANS) The Malaysia government has announced that it has plans to donate over 20 million protective rubber gloves to the five African countries affected by Ebola outbreak.
 
 
 

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Read more on Politics Balla
 
UN troops withdraw from Syrian side of Golan heights
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Read more on Politics Balla
 
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Read more on Politics Balla
 
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Read more on Business Balla