New Perspectives on Murphy Oil Corp Options Trading
Today marked the initiation of trading for new options expiring on November 15th for Murphy Oil Corp (Symbol: MUR). As investors scoured for opportunities, a particular put contract caught the eye.
The put contract with a strike price of $35.00 boasted a bid of $1.40. For an investor daring enough to sell-to-open this contract, they commit to buy the stock at $35.00. However, by collecting the premium, the cost basis for the shares would stand at $33.60, sans any broker commissions. An appealing proposition indeed for an investor contemplating MUR share acquisition at a current price of $35.88 per share.
Examining the Strategic Discount
The $35.00 strike point offers a modest 2% drop from the prevailing stock price, presenting itself as an out-of-the-money venture. This configuration introduces the chance that the put contract expires as null. According to current data analysis, the odds of this outcome stand at 59%. Over time, Stock Options Channel will monitor these probabilities, providing visual insights on the evolving landscape.
The potential return of 4.00% represented by the premium, in case of expiration, mirrors a 25.60% annualized rate—an element aptly labeled by Stock Options Channel as the YieldBoost.
Market Dynamics in Motion
A comprehensive view of the trailing twelve months trading history for Murphy Oil Corp is presented below. It highlights the placement of the $35.00 strike amidst the company’s past performance.
The example put contract exhibits an implied volatility of 50%, while the genuine trailing twelve-month volatility—a composite of the last 251 trading days closures alongside today’s price of $35.88—stands at 27%. For more intriguing put and call options prospects, a visit to StockOptionsChannel.com is highly recommended.