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Xerox Holdings (XRX) Shares Cross Above 200 DMA
Wednesday, June 7, 4:34 PM ET, by Market News Video Staff

In trading on Wednesday, shares of Xerox Holdings Corp (XRX) crossed above their 200 day ...

Ex-Dividend Reminder: Himax Technologies, Xerox Holdings and Granite Construction
Tuesday, June 27, 12:06 PM ET, by Market News Video Staff

On 6/29/23, Himax Technologies Inc (HIMX), Xerox Holdings Corp (XRX), and Granite Construction Inc (GVA) ...

Bullish Two Hundred Day Moving Average Cross - XRX
Monday, July 10, 11:29 AM ET, by Market News Video Staff

In trading on Monday, shares of Xerox Holdings Corp (XRX) crossed above their 200 day ...

Xerox Holdings (XRX) Passes Through 6% Yield Mark
Thursday, July 27, 6:29 PM ET, by Market News Video Staff

In trading on Thursday, shares of Xerox Holdings Corp (XRX) were yielding above the 6% ...

Commit To Purchase Xerox Holdings At $10, Earn 7% Using Options
Monday, July 31, 1:43 PM ET, by Market News Video Staff

Investors eyeing a purchase of Xerox Holdings Corp (XRX) shares, but tentative about paying the ...

January 2024 Options Now Available For Xerox Holdings (XRX)

By Market News Video Staff, Monday, September 13, 11:25 AM ET
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Investors in Xerox Holdings Corp (NASDAQ:XRX) saw new options begin trading today, for the January 2024 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 858 days until expiration the newly trading 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 XRX options chain for the new January 2024 contracts and identified one put and one call contract of particular interest.

The put contract at the $18.00 strike price has a current bid of $1.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $18.00, but will also collect the premium, putting the cost basis of the shares at $17.00 (before broker commissions). To an investor already interested in purchasing shares of XRX, that could represent an attractive alternative to paying $20.94/share today.

Because the $18.00 strike represents an approximate 14% 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 68%. 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 5.56% return on the cash commitment, or 2.36% annualized — at Stock Options Channel we call this the YieldBoost.

Below is a chart showing the trailing twelve month trading history for Xerox Holdings Corp, and highlighting in green where the $18.00 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $22.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of XRX stock at the current price level of $20.94/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $22.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.45% if the stock gets called away at the January 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if XRX shares really soar, which is why looking at the trailing twelve month trading history for Xerox Holdings Corp, as well as studying the business fundamentals becomes important. Below is a chart showing XRX's trailing twelve month trading history, with the $22.00 strike highlighted in red:

Considering the fact that the $22.00 strike represents an approximate 5% 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 51%. 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 2.39% boost of extra return to the investor, or 1.02% annualized, which we refer to as the YieldBoost.

The implied volatility in the put contract example is 66%, while the implied volatility in the call contract example is 47%.

Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $20.94) to be 36%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


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January 2024 Options Now Available For Xerox Holdings (XRX) | 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.

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