Investors in iShares MSCI Japan Index Fund (EWJ) saw new options become available today, for the November 16th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 114 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the EWJ options chain for the new November 16th contracts and identified one put and one call contract of particular interest.The put contract at the $10.00 strike price has a current bid of 9 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $10.00, but will also collect the premium, putting the cost basis of the shares at $9.91 (before broker commissions). To an investor already interested in purchasing shares of EWJ, that could represent an attractive alternative to paying $11.63/share today.
Interesting EWJ Put And Call For November 16th
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