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Invesco Mortgage Capital's Series B Preferred Stock Shares Cross 10% Yield Mark
Tuesday, September 22, 2:12 PM ET, by Market News Video Staff

In trading on Tuesday, shares of Invesco Mortgage Capital Inc's 7.75% Fixed-to-Floating Series B Cumulative ...

Invesco Mortgage Capital About To Put More Money In Your Pocket (IVR)
Tuesday, October 6, 11:00 AM ET, by Market News Video Staff

On 10/8/20, Invesco Mortgage Capital Inc (IVR) will trade ex-dividend, for its quarterly dividend of ...

Noteworthy Tuesday Option Activity: ANDE, STZ, IVR
Tuesday, October 6, 3:28 PM ET, by Market News Video Staff

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy ...

Invesco Mortgage Capital's Series A Preferred Stock Yield Pushes Past 9%
Wednesday, October 28, 2:08 PM ET, by Market News Video Staff

In trading on Wednesday, shares of Invesco Mortgage Capital Inc's 7.75% Series A Cumulative Redeemable ...

Noteworthy Monday Option Activity: FIZZ, QDEL, IVR
Monday, November 9, 3:22 PM ET, by Market News Video Staff

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume ...

June 11th Options Now Available For Invesco Mortgage Capital (IVR)

By Market News Video Staff, Thursday, April 29, 2:18 PM ET
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Investors in Invesco Mortgage Capital Inc (NYSE:IVR) saw new options begin trading today, for the June 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the IVR options chain for the new June 11th contracts and identified the following call contract of particular interest.

The call contract at the $4.00 strike price has a current bid of 15 cents. If an investor was to purchase shares of IVR stock at the current price level of $3.89/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $4.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.68% if the stock gets called away at the June 11th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if IVR shares really soar, which is why looking at the trailing twelve month trading history for Invesco Mortgage Capital Inc, as well as studying the business fundamentals becomes important. Below is a chart showing IVR's trailing twelve month trading history, with the $4.00 strike highlighted in red:

Considering the fact that the $4.00 strike represents an approximate 3% 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 3.86% boost of extra return to the investor, or 32.73% 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 $3.89) to be 83%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


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June 11th Options Now Available For Invesco Mortgage Capital (IVR) | Market News Video | Copyright © 2008 - 2021, All Rights Reserved

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