June 17 options now available for Americold Realty Trust (COLD)


IInvestors in Americald Realty Trust (Ticker: COLD) saw new options become available today, for the June 17 expiry. One of the key data points that goes into the price an option buyer is willing to pay is time value, so with 70 days to expiration, newly available contracts represent a possible opportunity for traders. sellers of put or call options to obtain a higher premium than would be available for contracts with closer expiration. At Stock Options Channel, our YieldBoost formula scoured the COLD options channel for new contracts on June 17 and identified the next call contract of particular interest.

The call contract at the strike price of $30.00 has a current bid of 10 cents. If an investor were to buy COLD stock at the current price level of $28.63/share and then sell to open this call contract as a “covered call”, they are committing to selling the stock at 30 $.00. Since the call seller will also collect the premium, this would result in a total return (excluding dividends, if any) of 5.13% if the stock is called at the June 17 expiration (before broker commissions). ). Of course, a lot of upside could potentially be left on the table if COLD stock really spikes, which is why it becomes important to look at Americold Realty Trust’s past 12-month trading history, as well as study the fundamentals of business. Below is a chart showing COLD’s trading history over the last twelve months, with the $30.00 strike highlighted in red:

Considering that the strike price of $30.00 represents a premium of approximately 5% to the current stock price (in other words, it is out of the price by that percentage), it It is also possible for the covered call contract to expire worthless, in which case the investor would keep both his shares and the premium collected. Current analytical data (including Greeks and implied Greeks) suggests that the current chance of this happening is 65%. On our website, under the contract detail page for that contract, the Stock Options Channel will track those odds over time to see how they change and publish a table of those numbers (the option contract’s trading history will be also plotted). If the covered call expires worthless, the premium would represent an increase of 0.35% in incremental return to the investor, or 1.82% annualized, what we call the Yield increase.

The implied volatility in the example call contract above is 109%.

Meanwhile, we calculate that the actual volatility for the last twelve months (considering the closing values ​​for the last 254 trading days as well as today’s price of $28.63) is 26%. For more put and call options contract ideas worth considering, visit StockOptionsChannel.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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