Turning to the calls side of the option chain, the call contract at the $29.50 strike price has a current bid of $2.05. If an investor was to purchase shares of P stock at the current price level of $29.05/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $29.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.61% if the stock gets called away at the December 13th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if P shares really soar, which is why looking at the trailing twelve month trading history for Pandora Media Inc, as well as studying the business fundamentals becomes important. Below is a chart showing P's trailing twelve month trading history, with the $29.50 strike highlighted in red:
December 13th Options Now Available For Pandora Media (P)
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