MNV
Market News Video
MNV MNV 10 Stocks Crossing Above Their 200 Day Moving Average
MNV
MNV
MNV
MNV
MNV
MNV
MNV
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Look Under The Hood: VLU Has 16% Upside
Tuesday, October 16, 7:44 AM ET, by Market News Video Staff

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

Interesting FNSR Put And Call Options For June 2019
Thursday, October 25, 10:38 AM ET, by Market News Video Staff

Investors in Finisar Corp (FNSR) saw new options become available this week, for the June ...

Bullish Two Hundred Day Moving Average Cross - FNSR
Wednesday, November 7, 1:56 PM ET, by Market News Video Staff

In trading on Wednesday, shares of Finisar Corp (FNSR) crossed above their 200 day moving ...

December 28th Options Now Available For Finisar (FNSR)
Thursday, November 8, 11:14 AM ET, by Market News Video Staff

Investors in Finisar Corp (FNSR) saw new options begin trading today, for the December 28th ...

Notable Thursday Option Activity: DIS, BA, FNSR
Thursday, November 8, 3:18 PM ET, by Market News Video Staff

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy ...

First Week of August 16th Options Trading For Finisar (FNSR)

By Market News Video Staff, Wednesday, June 26, 10:54 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 in Finisar Corp (NASDAQ:FNSR) saw new options become available this week, for the August 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the FNSR options chain for the new August 16th contracts and identified one put and one call contract of particular interest.

The put contract at the $22.00 strike price has a current bid of 35 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $22.00, but will also collect the premium, putting the cost basis of the shares at $21.65 (before broker commissions). To an investor already interested in purchasing shares of FNSR, that could represent an attractive alternative to paying $22.46/share today.

Because the $22.00 strike represents an approximate 2% discount 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 put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.59% return on the cash commitment, or 11.39% annualized — at Stock Options Channel we call this the YieldBoost.

Below is a chart showing the trailing twelve month trading history for Finisar Corp, and highlighting in green where the $22.00 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $23.00 strike price has a current bid of 35 cents. If an investor was to purchase shares of FNSR stock at the current price level of $22.46/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $23.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.96% if the stock gets called away at the August 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if FNSR shares really soar, which is why looking at the trailing twelve month trading history for Finisar Corp, as well as studying the business fundamentals becomes important. Below is a chart showing FNSR's trailing twelve month trading history, with the $23.00 strike highlighted in red:

Considering the fact that the $23.00 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 54%. 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 1.56% boost of extra return to the investor, or 11.15% annualized, which we refer to as the YieldBoost.

The implied volatility in the put contract example is 41%, while the implied volatility in the call contract example is 39%.

Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $22.46) to be 34%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


This Article's Word Cloud:   Arial   August   Below   Channel   Considering   Corp   FNSR   Finisar   Options   Should   Start   Stock   Strike   YieldBoost   also   call   chart   contract   covered   current   expire   fillColor   greeks   history   implied   investor   left   month   odds   options   premium   price   represent   return   sell   shares   stock   strike   that   they   this   those   trading   trailing   twelve   volatility   which   will   worthless   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 Portfolio Channel Stock Market Definitions
MNV

First Week of August 16th Options Trading For Finisar (FNSR) | 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.