Exploring April 26th Options for Ford Motor (F)
Today marked the initiation of trading for new options associated with Ford Motor Co. (Symbol: F) set to expire on April 26th. Investors eyeing these options had the opportunity to engage based on intriguing possibilities.
Delving into Put Options Scenario
One put contract stands out at the $11.50 strike price with a current bid of 20 cents. Selling this put contract carries the commitment to buy the stock at $11.50, augmented by collecting the premium, which effectively reduces the cost basis to $11.30 per share, offering a notable discount to the current share price.
Examining Call Options Possibilities
On the flip side, a call contract situated at the $13.00 strike price presents an interesting proposition with a current bid of 33 cents. Engaging in a “covered call” strategy by selling this call contract alongside owning Ford shares at $12.41 may lead to a compelling return of 7.41% if the stock is called away at expiration.
Contextualizing Options Relative to Trading History
Both the $11.50 put and $13.00 call strikes, set at discounts and premiums respectively to the current trading price, open up potential avenues for investors. Analytical data shines light on the possibilities and helps investors assess risk and reward.
Key Insights into Volatility
Implied volatility for these options stands at 35% for put contracts and 34% for call contracts. Meanwhile, the trailing twelve-month volatility, considering historical prices and today’s value, is at 34%, providing a broader perspective.
