Notable Thursday Option Activity: DEN, ETRN, AAPL Thursday, June 1, 3:38 PM ET, by Market News Video Staff Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume ...
Insiders Buy the Holdings of VTWV ETF Friday, June 23, 9:31 AM ET, by Market News Video Staff A look at the weighted underlying holdings of the Vanguard Russell 2000 Value ETF (VTWV) ...
ETRN Crosses Above Average Analyst Target Friday, July 28, 7:36 AM ET, by Market News Video Staff In recent trading, shares of Equitrans Midstream Corp (ETRN) have crossed above the average analyst ...
First Week of June 18th Options Trading For Equitrans Midstream (ETRN)
By Market News Video Staff, Friday, April 16, 3:54 PM ET
Investors in Equitrans Midstream Corp (NYSE:ETRN) saw new options become available this week, for the June 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ETRN options chain for the new June 18th contracts and identified the following put contract of particular interest.
The put contract at the $7.50 strike price has a current bid of 30 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $7.50, but will also collect the premium, putting the cost basis of the shares at $7.20 (before broker commissions). To an investor already interested in purchasing shares of ETRN, that could represent an attractive alternative to paying $8.04/share today.
Because the $7.50 strike represents an approximate 7% 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 65%. 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 4.00% return on the cash commitment, or 23.17% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Equitrans Midstream Corp, and highlighting in green where the $7.50 strike is located relative to that history:
The implied volatility in the put contract example above is 58%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $8.04) to be 54%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
This Article's Word Cloud:ArialBecauseBelowChannelCorpETRNEquitransInvestorsJuneMeanwhileMidstreamNYSEOptionsPutsShouldStartStockYieldBoostalsocallchartcontractcurrentexpirefillColorgreekshistoryimpliedinvestormonthoddsoptionspremiumpricerepresentsharesstockstrikethattheythisthosetodaytradingtrailingtwelvevolatilitywillworthlesswould
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 8.7%—Every Month—Forever.
You'll discover the details on 4 stocks and funds that pay you massive dividends as high as 8.7%.
Play Video:
The Importance of ETFs
Free Email Alerts By Stock:
Start slideshow: