Exploring April 26th Options for Amazon.com (AMZN)
Today, investors in Amazon.com Inc (Symbol: AMZN) observed the commencement of trading for the April 26th options expiry. Stock Options Channel’s YieldBoost formula diligently scanned the AMZN options chain to unveil intriguing opportunities, identifying one put and one call contract of distinctive allure.
Diving into Put Contracts and the $175.00 Strike Price
Embarking on the put side, the $175.00 strike price reveals a compelling narrative. With a current bid of $6.75, investors delving into this put contract commit to procuring the stock at $175.00, concurrently receiving the premium. This strategic move positions the cost basis at $168.25 (pre-broker commissions), offering an enticing alternative for potential AMZN investors at $176.54/share.
Trading at a 1% discount to the prevailing stock price, the $175.00 strike hinting at insightful prospects, underscored by a 57% probability of the put contract expiring fruitlessly. Stock Options Channel pledges to monitor these odds meticulously, crafting a visual representation of the dynamic figures on their platform.
Charting AMZN’s Trajectory and Call Contracts at $185.00
Transitioning to the calls hemisphere, the $185.00 strike stands out prominently. Tagged with a $4.45 bid, investors acquiring AMZN shares at $176.54/share can leverage this call contract through a “covered call” approach, committing to vend the stock at $185.00. With the potential to secure a 7.31% total return (excluding dividends), this strategy brings forth a captivating proposition.
Although the covered call contract’s 5% premium to the existing stock price hints at a potential expiration, patrons can deftly manage this situation with a 62% chance of the contract expiring without value. Stock Options Channel vows to provide real-time insights into these probabilities, facilitating informed decision-making.
Assessing Volatility and Beyond
The implied volatility stands at 33% for put contracts and 32% for call contracts, offering a peek into the market sentiment. Meanwhile, the trailing twelve-month volatility, based on the last 251 trading days and today’s price of $176.54, clocks in at 30%, providing a holistic view of the stock’s performance spectrum.
For further exploration of potential put and call options strategies, investors are encouraged to peruse the offerings at StockOptionsChannel.com, a treasure trove of market intelligence and insights.