Turning to the calls side of the option chain, the call contract at the $50.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of TRP stock at the current price level of $48.62/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $50.00. Considering the call seller will also collect the premium, that would drive a total return of 3.87% if the stock gets called away at the July expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if TRP shares really soar, which is why looking at the trailing twelve month trading history for TransCanada Corp, as well as studying the business fundamentals becomes important. Below is a chart showing TRP's trailing twelve month trading history, with the $50.00 strike highlighted in red:
TRP July Options Begin Trading
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