Investors in KAR Auction Services Inc. (KAR) saw new options become available this week, for the February 2014 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the KAR options chain for the new February 2014 contracts and identified the following call contract of particular interest.The call contract at the $30.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of KAR stock at the current price level of $29.07/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $30.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.92% if the stock gets called away at the February 2014 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if KAR shares really soar, which is why looking at the trailing twelve month trading history for KAR Auction Services Inc., as well as studying the business fundamentals becomes important. Below is a chart showing KAR's trailing twelve month trading history, with the $30.00 strike highlighted in red:
First Week of February 2014 Options Trading For KAR Auction Services (KAR)
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