Investors in Barclays Bank plc (VXX) saw new options become available this week, for the November 2014 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 459 days until expiration the newly available contracts represent a possible 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 VXX options chain for the new November 2014 contracts and identified one put and one call contract of particular interest.The put contract at the $15.00 strike price has a current bid of $4.50. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.00, but will also collect the premium, putting the cost basis of the shares at $10.50 (before broker commissions). To an investor already interested in purchasing shares of VXX, that could represent an attractive alternative to paying $15.35/share today.
Interesting VXX Put And Call For November 2014
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