Discovering Potential
As the options market welcomes the trading debut for the November 29th expiration, the air is thick with anticipation. Investors in Amazon.com Inc. (Symbol: AMZN) have a unique chance to engage with newfound options.
The unveiling of the options chain for Amazon.com Inc. (AMZN) teases investors with a put and call contract at the $185.00 and $195.00 strike price, respectively. This entrancing duo beckons with opportunities for profit and risk in equal measure.
Unmasking the Put Contract
The put contract at the $185.00 strike price dances tantalizingly with a current bid of $7.40. Admirers of this contract may find themselves enticed to engage, potentially purchasing the shares at $185.00, albeit cushioned by the premium, thus sweetening the deal to $177.60 per share.
A peek backstage reveals that the sumptuous $185.00 strike carries an allure, standing at an approximate 1% discount to the current stock price, whispering seductively of rewards yet to be unveiled.
Exploring the Call Contract
The call contract at the $195.00 strike price is a siren’s call, with a current bid of $6.30, tempting investors towards a covered call strategy. The proposition to sell the stock at $195.00, layered with the call premium, offers a total return scenario ripe with potential.
As investors plunge into the depths of the $195.00 strike, they find themselves drifting towards the out-of-the-money territory, carrying both risks and promises of glorious returns.
Leveraging Volatility
A cloak of volatility shrouds both the put and call contracts, with an approximate 34% implied volatility casting a spell of uncertainty over the options market. Meanwhile, a real-world reverie reveals a trailing twelve month volatility of 28%, informing investors of the ebbs and flows awaiting.
The options landscape for Amazon.com Inc. (AMZN) shimmers with potential, promising insight into an ever-evolving market. As investors navigate through the call and put contracts, the YieldBoost formula gazes ahead, seeking to unlock the mysteries of risk and reward.
Charting the Course
The visual symphony of the trailing twelve month trading history for Amazon.com Inc. unfolds, with the $185.00 and $195.00 strikes painted in contrasting hues. Every line and color on the canvas hints at the intricate dance between risk and reward, inviting investors on a journey of discovery and growth.