Investors in MSC Industrial Direct Co., Inc. (MSM) saw new options begin trading today, for the January 2014 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MSM options chain for the new January 2014 contracts and identified the following call contract of particular interest.The call contract at the $80.00 strike price has a current bid of 30 cents. If an investor was to purchase shares of MSM stock at the current price level of $79.08/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $80.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 1.54% if the stock gets called away at the January 2014 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if MSM shares really soar, which is why looking at the trailing twelve month trading history for MSC Industrial Direct Co., Inc., as well as studying the business fundamentals becomes important. Below is a chart showing MSM's trailing twelve month trading history, with the $80.00 strike highlighted in red:
Interesting MSM Call Options For January 2014
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