Stock Message Boards
MNV
Market News Video
MNV MNV Model Portfolios ChartZero
MNV
MNV
MNV
MNV
MNV
MNV
MNV
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

OIH, HAL, NOV, BHI: Large Outflows Detected at ETF
Monday, January 6, 11:13 AM ET, by Market News Video Staff

Symbols mentioned in this story: OIH, HAL, NOV, BHI Exchange traded funds (ETFs) trade just ...

OIH, HAL, NOV, BHI: Large Inflows Detected at ETF
Tuesday, January 14, 11:24 AM ET, by Market News Video Staff

Symbols mentioned in this story: OIH, HAL, NOV, BHI Exchange traded funds (ETFs) trade just ...

OIH, HAL, NOV, BHI: ETF Inflow Alert
Thursday, January 23, 11:12 AM ET, by Market News Video Staff

Symbols mentioned in this story: OIH, HAL, NOV, BHI Exchange traded funds (ETFs) trade just ...

Interesting January 2016 Stock Options for HAL
Monday, January 27, 12:02 PM ET, by Market News Video Staff

Consistently, one of the more popular stocks people enter into their stock options watchlist at ...

IGE, SU, HAL, CNQ: ETF Outflow Alert
Monday, February 3, 11:08 AM ET, by Market News Video Staff

Symbols mentioned in this story: IGE, SU, HAL, CNQ Exchange traded funds (ETFs) trade just ...

  More articles:  1 2 3 4 5 6 7 next »

HAL September 21st Options Begin Trading

By Market News Video Staff, Monday, June 24, 12:19 PM ET
Play Video: The Importance of ETFs


If the video does not load after a few moments, Upgrade to the Latest Flash Player.

Investors in Halliburton Company (NYSE:HAL) saw new options become available today, for the September 21st expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 89 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the HAL options chain for the new September 21st contracts and identified the following call contract of particular interest.

The call contract at the $41.00 strike price has a current bid of $2.19. If an investor was to purchase shares of HAL stock at the current price level of $40.37/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $41.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.99% if the stock gets called away at the September 21st expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if HAL shares really soar, which is why looking at the trailing twelve month trading history for Halliburton Company, as well as studying the business fundamentals becomes important. Below is a chart showing HAL's trailing twelve month trading history, with the $41.00 strike highlighted in red:

Considering the fact that the $41.00 strike represents an approximate 2% 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 51%. 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 5.42% boost of extra return to the investor, or 22.25% annualized, which we refer to as the YieldBoost.

The implied volatility in the call contract example above is 32%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 248 trading day closing values as well as today's price of $40.37) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


Top Six Most Viewed Stories This Week @ Market News Video:
Tuesday Sector Leaders: General Contractors & Builders, Computer PeripheralsTuesday Sector Leaders: General Contractors & Builders, Computer Peripherals
Channel: Market Movers
Related symbols: MHO,BZH,EXTR,KTCC
S&P 500 Analyst Moves: VRTXS&P 500 Analyst Moves: VRTX
Channel: Upgrades/Downgrades
Related symbols: VRTX
S&P 500 Analyst Moves: MHKS&P 500 Analyst Moves: MHK
Channel: Upgrades/Downgrades
Related symbols: MHK
Tuesday 4/1 Insider Buying Report: TFM, HEROTuesday 4/1 Insider Buying Report: TFM, HERO
Channel: Insider Buying Report
Related symbols: TFM,HERO
Dow Analyst Moves: CSCODow Analyst Moves: CSCO
Channel: Upgrades/Downgrades
Related symbols: CSCO
Wednesday 4/2 Insider Buying Report: LUB, EXAWednesday 4/2 Insider Buying Report: LUB, EXA
Channel: Insider Buying Report
Related symbols: LUB,EXA

This Article's Word Cloud:   Company   Considering   Definition   Halliburton   Options   September   Stock   YieldBoost   also   available   call   chart   contract   contracts   covered   current   data   expiration   expire   fillColor   greeks   history   implied   investor   left   looking   month   odds   options   premium   price   represent   return   sell   shares   stock   strike   that   those   time   today   trading   trailing   twelve   volatility   which   will   with   worthless   would
MNV
MNV
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use & Privacy Policy - Video Widget
MNV
Home  |  Analyst News  Dividend Report  Econonomic News  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV
MNV MNV Stock Market Definitions
MNV

HAL September 21st Options Begin Trading | Market News Video | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.