Investors in Jakks Pacific Inc. (JAKK) saw new options begin trading this week, for the November 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the JAKK options chain for the new November 16th contracts and identified the following call contract of particular interest.The call contract at the $5.00 strike price has a current bid of 30 cents. If an investor was to purchase shares of JAKK stock at the current price level of $4.72/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $5.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.29% if the stock gets called away at the November 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if JAKK shares really soar, which is why looking at the trailing twelve month trading history for Jakks Pacific Inc., as well as studying the business fundamentals becomes important. Below is a chart showing JAKK's trailing twelve month trading history, with the $5.00 strike highlighted in red:
First Week Of November 16th Options Trading For Jakks Pacific (JAKK)
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