New Options Available
As investors in Centene Corp (Symbol: CNC) scan the market, intriguing options emerged today for the upcoming May 31st expiration. Opportunities are ripe with one put and one call contract catching the spotlight.
Potential Profit Paths
Delving deeper, a put contract at the $61.00 strike price beckons with a bid of 20 cents. By venturing into the sell-to-open territory, investors commit to acquiring the stock at $61.00, fortified by collecting the premium and lowering the cost basis to $60.80.
Considering the strike price’s 15% discount to the current stock price, there is a possibility of the put contract expiring worthless, with the odds standing at an analytical 85%. Monitoring these chances over time is crucial for investors.
Visualizing the Trading History
To complement the analysis, a mapped history of the trailing twelve months presents itself, guiding shareholders through the nuances and highlighting the $61.00 strike in green hues.
Exploring Calls
Embracing the calls side, a call contract at the $81.00 strike price prompts attention with a bid of 30 cents. Effectively selling-to-open the call after purchasing CNC shares at $71.49/share opens doors for a covered call strategy with a potential return of 13.72%.
While there is a chance of missing out on potential stock gains if the shares surge, carefully studying the historical trading performance and business fundamentals is advised.
Understanding the Analytics
If the $81.00 strike call falters, and the covered call lapses, a 0.42% extra return entices the investor. Tracking the odds is vital, with the current probability of it expiring worthless estimated at 83%.
Volatility Insights
Volatility indicators suggest a 48% implied volatility in the put contract and 31% in the call contract examples. In contrast, the actual trailing twelve-month volatility is gauged at 26%.
For a plethora of put and call contract ideas worth exploring, a visit to StockOptionsChannel.com could be rewarding.
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DNO Historical Stock Prices