Investors in Pioneer Natural Resources Co (PXD) saw new options begin trading today, for the September 20th 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 242 days until expiration the newly trading 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 PXD options chain for the new September 20th contracts and identified one put and one call contract of particular interest.The put contract at the $175.0 strike price has a current bid of $18.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $175.0, but will also collect the premium, putting the cost basis of the shares at $156.40 (before broker commissions). To an investor already interested in purchasing shares of PXD, that could represent an attractive alternative to paying $176.51/share today.
September 20th Options Now Available For Pioneer Natural Resources (PXD)
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