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:

Grab This Deal Even Lower Than Director Peterson Did
Monday, February 25, 1:30 PM ET, by Market News Video Staff

There's an old saying on Wall Street about insider buying: there are many possible reasons ...

Ex-Dividend Reminder: Getty Realty, International Game Technology and Sabre
Monday, March 18, 10:11 AM ET, by Market News Video Staff

On 3/20/19, Getty Realty Corp. (GTY), International Game Technology PLC (IGT), and Sabre Corp (SABR) ...

First Week of May 17th Options Trading For Sabre (SABR)
Wednesday, March 20, 10:58 AM ET, by Market News Video Staff

Investors in Sabre Corp (SABR) saw new options begin trading this week, for the May ...

The Math Shows VONV Can Go To $121
Tuesday, April 23, 7:52 AM ET, by Market News Video Staff

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

First Week of SABR June 21st Options Trading
Monday, April 29, 11:01 AM ET, by Market News Video Staff

Investors in Sabre Corp (SABR) saw new options begin trading this week, for the June ...

Interesting SABR Put And Call Options For February 2020

By Market News Video Staff, Monday, December 30, 11:37 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 Sabre Corp (NASDAQ:SABR) saw new options begin trading this week, for the February 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SABR options chain for the new February 2020 contracts and identified one put and one call contract of particular interest.

The put contract at the $20.00 strike price has a current bid of 20 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.00, but will also collect the premium, putting the cost basis of the shares at $19.80 (before broker commissions). To an investor already interested in purchasing shares of SABR, that could represent an attractive alternative to paying $22.58/share today.

Because the $20.00 strike represents an approximate 11% 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 91%. 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 1.00% return on the cash commitment, or 6.89% annualized — at Stock Options Channel we call this the YieldBoost.

Below is a chart showing the trailing twelve month trading history for Sabre Corp, and highlighting in green where the $20.00 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $25.00 strike price has a current bid of 20 cents. If an investor was to purchase shares of SABR stock at the current price level of $22.58/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $25.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.60% if the stock gets called away at the February 2020 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SABR shares really soar, which is why looking at the trailing twelve month trading history for Sabre Corp, as well as studying the business fundamentals becomes important. Below is a chart showing SABR's trailing twelve month trading history, with the $25.00 strike highlighted in red:

Considering the fact that the $25.00 strike represents an approximate 11% 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 86%. 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 0.89% boost of extra return to the investor, or 6.10% annualized, which we refer to as the YieldBoost.

The implied volatility in the put contract example is 39%, while the implied volatility in the call contract example is 32%.

Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $22.58) to be 24%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


This Article's Word Cloud:   Arial   Below   Channel   Considering   Corp   February   Options   SABR   Sabre   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 Stock Message Boards Stock Market Definitions
MNV

Interesting SABR Put And Call Options For February 2020 | Market News Video | Copyright © 2008 - 2020, 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.