Noteworthy ETF Outflows: HYLB Friday, May 19, 3:03 PM ET, by Market News Video Staff Symbols mentioned in this story: HYLB Exchange traded funds (ETFs) trade just like stocks, but ...
HYLB: Large Outflows Detected at ETF Wednesday, May 31, 3:03 PM ET, by Market News Video Staff Symbols mentioned in this story: HYLB Exchange traded funds (ETFs) trade just like stocks, but ...
HYLB Crosses Below Key Moving Average Level Friday, June 23, 10:55 AM ET, by Market News Video Staff In trading on Friday, shares of the HYLB ETF (HYLB) crossed below their 200 day ...
Noteworthy ETF Inflows: HYLB Thursday, July 13, 10:56 AM ET, by Market News Video Staff Symbols mentioned in this story: HYLB Exchange traded funds (ETFs) trade just like stocks, but ...
Interesting HYLB Put Options For June 2022
By Market News Video Staff, Friday, October 15, 12:03 PM ET
Investors in Xtrackers Usd High Yield Corporate Bond Etf (NYSE:HYLB) saw new options become available this week, for the June 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 245 days until expiration the newly available contracts represent a potential 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 HYLB options chain for the new June 2022 contracts and identified the following put contract of particular interest.
The put contract at the $39.00 strike price has a current bid of $1.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $39.00, but will also collect the premium, putting the cost basis of the shares at $37.85 (before broker commissions). To an investor already interested in purchasing shares of HYLB, that could represent an attractive alternative to paying $39.92/share today.
Because the $39.00 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 46%. 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 2.95% return on the cash commitment, or 4.39% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Xtrackers Usd High Yield Corporate Bond Etf, and highlighting in green where the $39.00 strike is located relative to that history:
The implied volatility in the put contract example above is 14%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $39.92) to be 4%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
This Article's Word Cloud:ArialBecauseBondChannelCorporateHYLBHighJuneOptionsStockXtrackersYieldYieldBoostalsoavailablecallchartcontractcontractscurrentexpirationexpirefillColorgreekshistoryimpliedinvestormonthoddsoptionspremiumpricerepresentsharesstockstrikethattheythisthosetimetodaytradingtrailingtwelvevolatilitywillwithworthlesswould
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%.