Turning to the calls side of the option chain, the call contract at the $40.00 strike price has a current bid of $2.25. If an investor was to purchase shares of H stock at the current price level of $38.14/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $40.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.78% if the stock gets called away at the February 2014 expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if H shares really soar, which is why looking at the trailing twelve month trading history for Hyatt Hotels Corp, as well as studying the business fundamentals becomes important. Below is a chart showing H's trailing twelve month trading history, with the $40.00 strike highlighted in red:
Interesting Hyatt Hotels Put And Call For February 2014
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