MNV
Market News Video
MNV MNV 10 Stocks Crossing Below Book Value
MNV
MNV
MNV
MNV
MNV
MNV
MNV
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

APD Trading Below CEO's Recent Buy Price
Tuesday, December 5, 11:12 AM ET, by Market News Video Staff

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

APD Named A Top Socially Responsible Dividend Stock
Wednesday, December 6, 8:11 AM ET, by Market News Video Staff

Air Products & Chemicals Inc (APD) has been named a Top Socially Responsible Dividend Stock ...

Why Air Products & Chemicals is a Top 25 SAFE Dividend Stock (APD)
Friday, December 8, 7:30 AM ET, by Market News Video Staff

Air Products & Chemicals Inc (APD) has been named to the Dividend Channel ''S.A.F.E. 25'' ...

Air Products & Chemicals Named Top Dividend Stock With Insider Buying and 2.67% Yield (APD)
Friday, December 8, 12:14 PM ET, by Market News Video Staff

In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then ...

The Materials Select Sector SPDR Fund Experiences Big Outflow
Monday, December 11, 10:49 AM ET, by Market News Video Staff

Symbols mentioned in this story: XLB, SHW, APD, FCX Exchange traded funds (ETFs) trade just ...

September 17th Options Now Available For Air Products & Chemicals (APD)

By Market News Video Staff, Thursday, January 14, 11:20 AM ET
Play Video: The Importance of ETFs


If the video does not load after a few moments, Upgrade to the Latest Flash Player.
Email EnvelopeFree Email Alerts By Stock:
Get Dividend Alerts
Get SEC Filing Alerts

Investors in Air Products & Chemicals Inc (NYSE:APD) saw new options become available today, for the September 17th 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 246 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 APD options chain for the new September 17th contracts and identified one put and one call contract of particular interest.

The put contract at the $280.00 strike price has a current bid of $22.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $280.00, but will also collect the premium, putting the cost basis of the shares at $257.30 (before broker commissions). To an investor already interested in purchasing shares of APD, that could represent an attractive alternative to paying $287.29/share today.

Because the $280.00 strike represents an approximate 3% 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 100%. 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 8.11% return on the cash commitment, or 12.03% annualized — at Stock Options Channel we call this the YieldBoost.

Below is a chart showing the trailing twelve month trading history for Air Products & Chemicals Inc, and highlighting in green where the $280.00 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $290.00 strike price has a current bid of $23.70. If an investor was to purchase shares of APD stock at the current price level of $287.29/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $290.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.19% if the stock gets called away at the September 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if APD shares really soar, which is why looking at the trailing twelve month trading history for Air Products & Chemicals Inc, as well as studying the business fundamentals becomes important. Below is a chart showing APD's trailing twelve month trading history, with the $290.00 strike highlighted in red:

Considering the fact that the $290.00 strike represents an approximate 1% 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 99%. 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 8.25% boost of extra return to the investor, or 12.24% annualized, which we refer to as the YieldBoost.

Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $287.29) to be 45%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


This Article's Word Cloud:   Arial   Channel   Chemicals   Options   Products   September   Stock   YieldBoost   also   available   call   chart   contract   contracts   covered   current   data   expiration   expire   fillColor   greeks   history   investor   left   month   odds   option   options   premium   price   represent   return   sell   shares   stock   strike   that   they   this   those   time   today   trading   trailing   twelve   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
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

September 17th Options Now Available For Air Products & Chemicals (APD) | Market News Video | Copyright © 2008 - 2024, 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.

X
Wait! Don't leave yet.
Want to receive our latest research absolutely free?


Click the button below for your complimentary copy of Your Early Retirement Portfolio: Dividends Up to 9.5%—Every Month—Forever.

You'll discover the details on 4 stocks and funds that pay you massive dividends as high as 9.5%.