Investors in Extreme Networks Inc (EXTR) saw new options become available this week, for the August 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the EXTR options chain for the new August 16th contracts and identified the following call contract of particular interest.The call contract at the $5.00 strike price has a current bid of 10 cents. If an investor was to purchase shares of EXTR stock at the current price level of $4.37/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $5.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 16.70% if the stock gets called away at the August 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if EXTR shares really soar, which is why looking at the trailing twelve month trading history for Extreme Networks Inc, as well as studying the business fundamentals becomes important. Below is a chart showing EXTR's trailing twelve month trading history, with the $5.00 strike highlighted in red:
First Week Of August 16th Options Trading For Extreme Networks (EXTR)
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