Investors in Salesforce.com Inc (NYSE: CRM) viewed new options start trading today, for the March 7th expiration. At Stock Options Station, our YieldBoost formula identified one put and one call contract of specific interest and has looked up and down the CRM System options chain for the new March 7th contracts.
If an investor was to sell-to-open that put contract, they may be investing to buy the stock at $58.50, but will additionally collect the premium, setting the cost basis of the shares at $56.39 (before agent fees). To an investor already considering buying shares of CRM, that may signify an enticing option to paying $60.59/share today.
Because the $58.50 strike represents an approximate 3% reduction to the present trading price of the stock (in other words it’s out-of-the-cash by that percent), there’s additionally the option that the put contract would expire worthless. The present analytic data (including greeks and tacit greeks) indicate the present likelihood of that occurring are 63%. Stock Options Station will monitor those chances as time passes to see how they transform, printing a graph of those amounts on our web site under the contract detail page with this contract. Should the contract expire useless, the premium would represent a 3.61% yield on the cash obligation, or 36.57% annualized — at Stock Options Station we call this the YieldBoost.
Below is a graph revealing the trailing twelve month trading history for Salesforce.com Inc, and emphasizing in green where the $58.50 strike is found relative to that history:
Naturally, a lot of upside could possibly be made on the table if CRM shares actually soar, that’s why looking at the trailing twelve month trading history for Salesforce.com Inc, along with examining the company principles becomes significant. Below is a graph revealing CRM’s trailing twelve month trading history, with the $61.00 strike emphasized in red:
The present analytic data (including greeks and tacit greeks) indicate the present likelihood of that occurring are 50%. On our web site under the contract detail page with this contract, Stock Options Station will monitor those chances as time passes to see how they shift and release a graph of those amounts (the trading history of the option contract may also be charted). Should the covered call contract expire useless, the premium would represent a 4.23% rise of extra yield to the investor, or 42.84% annualized, which we refer to as the YieldBoost.
Meanwhile, we compute the real trailing twelve month unpredictability (contemplating the last 252 trading day final values together with today’s cost of $60.59) to be 32%. For more put and call options contract thoughts worth looking at, see StockOptionsChannel.com.