Interesting QLIK Put And Call Options For December 21st

Investors in Qlik Technologies Inc. ( QLIK) saw new options begin trading this week, for the December 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the QLIK options chain for the new December 21st contracts and identified one put and one call contract of particular interest.

The put contract at the $33.00 strike price has a current bid of $2.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $33.00, but will also collect the premium, putting the cost basis of the shares at $30.30 (before broker commissions). To an investor already interested in purchasing shares of QLIK, that could represent an attractive alternative to paying $33.35/share today.

Because the $33.00 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 56%. 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 8.18% return on the cash commitment, or 50.58% 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 Qlik Technologies Inc., and highlighting in green where the $33.00 strike is located relative to that history:

If you liked this article you might like

Tableau Software: Visualize a Share Price in the $60s

Outsiders Led the Buyouts of Tech 'Unicorns' in 2016

Cramer: Markets Are Shrugging off Italian Referendum Worries

MSFT, QLIK, ADBE: Jim Cramer's Views

Cramer: The World Hates Tech Right Now