Investors in Geron Corp. (GERN) saw new options become available today, for the January 2016 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 795 days until expiration the newly available contracts represent a potential 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 GERN options chain for the new January 2016 contracts and identified the following call contract of particular interest.The call contract at the $7.00 strike price has a current bid of $1.00. If an investor was to purchase shares of GERN stock at the current price level of $4.86/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $7.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 64.61% if the stock gets called away at the January 2016 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if GERN shares really soar, which is why looking at the trailing twelve month trading history for Geron Corp., as well as studying the business fundamentals becomes important. Below is a chart showing GERN's trailing twelve month trading history, with the $7.00 strike highlighted in red:
Interesting GERN Call Options For January 2016
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