Turning to the calls side of the option chain, the call contract at the $65.00 strike price has a current bid of $2.50. If an investor was to purchase shares of SOHU stock at the current price level of $61.07/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $65.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.53% 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 SOHU shares really soar, which is why looking at the trailing twelve month trading history for Sohu.com Inc, as well as studying the business fundamentals becomes important. Below is a chart showing SOHU's trailing twelve month trading history, with the $65.00 strike highlighted in red:
First Week Of SOHU October 19th Options Trading
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