The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2015 put at the $290 strike for the 1.6% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for AutoZone, Inc. (considering the last 250 trading day closing values as well as today's price of $425.61) to be 18%. For other put options contract ideas at the various different available expirations, visit the AZO Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 952,255 contracts, with call volume at 1.20M, for a put:call ratio of 0.79 so far for the day, which is unusually high compared to the long-term median put:call ratio of .65. In other words, there are lots more put buyers out there in options trading so far today than would normally be seen, as compared to call buyers. Find out which 15 call and put options traders are talking about today.