Investors in Montpelier Re Holdings Ltd. (MRH) saw new options become available this week, for the May 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MRH options chain for the new May 17th contracts and identified the following call contract of particular interest.The call contract at the $30.00 strike price has a current bid of 25 cents. If an investor was to purchase shares of MRH stock at the current price level of $29.41/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 2.86% if the stock gets called away at the May 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if MRH shares really soar, which is why looking at the trailing twelve month trading history for Montpelier Re Holdings Ltd., as well as studying the business fundamentals becomes important. Below is a chart showing MRH's trailing twelve month trading history, with the $30.00 strike highlighted in red:
Interesting MRH Call Options For May 17th
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