Investors in Sunstone Hotel Investors Inc (SHO) saw new options become available this week, for the October 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SHO options chain for the new October 19th contracts and identified the following call contract of particular interest.The call contract at the $12.50 strike price has a current bid of 30 cents. If an investor was to purchase shares of SHO stock at the current price level of $12.27/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $12.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.32% if the stock gets called away at the October 19th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SHO shares really soar, which is why looking at the trailing twelve month trading history for Sunstone Hotel Investors Inc, as well as studying the business fundamentals becomes important. Below is a chart showing SHO's trailing twelve month trading history, with the $12.50 strike highlighted in red:
First Week Of SHO October 19th Options Trading
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