Investors in Concurrent Computer Corp. (CCUR) saw new options become available today, for the July expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the CCUR options chain for the new July contracts and identified the following call contract of particular interest.The call contract at the $7.50 strike price has a current bid of 35 cents. If an investor was to purchase shares of CCUR stock at the current price level of $7.15/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $7.50. Considering the call seller will also collect the premium, that would drive a total return of 9.79% if the stock gets called away at the July expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if CCUR shares really soar, which is why looking at the trailing twelve month trading history for Concurrent Computer Corp., as well as studying the business fundamentals becomes important. Below is a chart showing CCUR's trailing twelve month trading history, with the $7.50 strike highlighted in red: Considering the fact that the $7.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.90% boost of extra return to the investor, or 29.29% annualized, which we refer to as the YieldBoost. The implied volatility in the call contract example above is 55%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 248 trading day closing values as well as today's price of $7.15) to be 53%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
Chipotle Initiated Outperform at Credit Suisse With $870 Price Target
Credit Suisse initiated coverage of Chipotle Mexican Grill with an outperform recommendation and price target of $870. The stock gained more than $10.
GrubHub Delivers for Investors as Citigroup Upgrades Stock to Buy
Food-ordering service can boost sales despite competition, and it may plan new partnerships, analyst says.
Dow Ends Lower, Stocks Fall as Powell Says Fed 'Grappling' with Rate Cut
Major indexes declined Tuesday after Federal Reserve Chairman Jerome Powell hedged on a possible rate cut.