MNV
Market News Video
MNV MNV 10 Bargains You Can Buy Cheaper Than Insiders Did
MNV
MNV
MNV
MNV
MNV
MNV
MNV
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Implied ITA Analyst Target Price: $228
Monday, August 13, 9:46 AM ET, by Market News Video Staff

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Engility Holdings is Now Oversold (EGL)
Friday, October 12, 11:52 AM ET, by Market News Video Staff

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy ...

EGL Crosses Below Key Moving Average Level
Friday, October 26, 11:30 AM ET, by Market News Video Staff

In trading on Friday, shares of Engility Holdings Inc (EGL) crossed below their 200 day ...

Engility Holdings (EGL) Shares Cross Below 200 DMA
Tuesday, November 20, 11:43 AM ET, by Market News Video Staff

In trading on Tuesday, shares of Engility Holdings Inc (EGL) crossed below their 200 day ...

Commit To Buy Engility Holdings At $30, Earn 13.6% Annualized Using Options
Monday, November 26, 11:39 AM ET, by Market News Video Staff

Investors eyeing a purchase of Engility Holdings Inc (EGL) stock, but tentative about paying the ...

Commit To Buy Engility Holdings At $30, Earn 13.6% Annualized Using Options

By Market News Video Staff, Monday, November 26, 11:39 AM ET
Play Video: How To Sell A PUT


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

Investors eyeing a purchase of Engility Holdings Inc (EGL) stock, but tentative about paying the going market price of $31.13/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the April 2019 put at the $30 strike, which has a bid at the time of this writing of $1.60. Collecting that bid as the premium represents a 5.3% return against the $30 commitment, or a 13.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

Selling a put does not give an investor access to EGL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $30 strike if doing so produced a better outcome than selling at the going market price. (Do options carry counterparty risk? This and six other common options myths debunked). So unless Engility Holdings Inc sees its shares decline 4.4% and the contract is exercised (resulting in a cost basis of $28.40 per share before broker commissions, subtracting the $1.60 from $30), the only upside to the put seller is from collecting that premium for the 13.6% annualized rate of return.

Below is a chart showing the trailing twelve month trading history for Engility Holdings Inc , and highlighting in green where the $30 strike is located relative to that history:

The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the April 2019 put at the $30 strike for the 13.6% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Engility Holdings Inc (considering the last 251 trading day closing values as well as today's price of $31.13) to be 38%. For other put options contract ideas at the various different available expirations, visit the EGL Stock Options page of StockOptionsChannel.com.

In mid-afternoon trading on Monday, the put volume among S&P 500 components was 890,940 contracts, with call volume at 1.13M, for a put:call ratio of 0.79 so far for the day, which is unusually high compared to the long-term median put:call ratio of .65. In other words, there are lots more put buyers out there in options trading so far today than would normally be seen, as compared to call buyers. Find out which 15 call and put options traders are talking about today.


This Article's Word Cloud:   April   Engility   Holdings   Options   Stock   YieldBoost   about   among   annualized   benefit   buyers   call   chart   compared   considering   contract   exercised   fillColor   from   going   history   market   month   only   options   other   owning   premium   price   rate   ratio   represents   return   seller   selling   share   shares   stock   strike   than   that   there   this   today   trading   trailing   twelve   upside   which   would
MNV
MNV
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy
MNV
Home  |  Analyst News  Dividend Report  ETFs  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV
MNV MNV Chart Zero Stock Market Game Stock Market Definitions
MNV

Commit To Buy Engility Holdings At $30, Earn 13.6% Annualized Using Options | Market News Video | Copyright © 2008 - 2019, 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.