Interesting IM Put For November 16th

Investors in Ingram Micro Inc. (IM) saw new options begin trading this week, for the November 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the IM options chain for the new November 16th contracts and identified the following put contract of particular interest.

The put contract at the $22.50 strike price has a current bid of 60 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $22.50, but will also collect the premium, putting the cost basis of the shares at $21.90 (before broker commissions). To an investor already interested in purchasing shares of IM, that could represent an attractive alternative to paying $22.65/share today.

Because the $22.50 strike represents an approximate 1% discount 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 put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.67% return on the cash commitment, or 18.70% annualized — at Stock Options Channel we call this the YieldBoost.

START SLIDESHOW:
Top YieldBoost Puts of the S&P 500 »

Below is a chart showing the trailing twelve month trading history for Ingram Micro Inc., and highlighting in green where the $22.50 strike is located relative to that history:

Loading+chart++2013+TickerTech.com

The implied volatility in the put contract example above is 23%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $22.65) to be 22%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

null

More from Stocks

One Stunning Stat Shows How Important Tech Stocks Have Become in Investing

One Stunning Stat Shows How Important Tech Stocks Have Become in Investing

Stocks Slide on Renewed Trade War Concerns

Stocks Slide on Renewed Trade War Concerns

Emerging Markets Get Pounded by Global Trade Concerns

Emerging Markets Get Pounded by Global Trade Concerns

Video: Here's Where to Put Your Money Amid Trade War Fears

Video: Here's Where to Put Your Money Amid Trade War Fears

The Single Biggest Reason Trade War Fears Could Finally Topple the Stock Market

The Single Biggest Reason Trade War Fears Could Finally Topple the Stock Market