MTZ March 22nd Options Begin Trading

Investors in MasTec Inc. ( MTZ) saw new options begin trading today, for the March 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MTZ options chain for the new March 22nd contracts and identified one put and one call contract of particular interest.

The put contract at the $30.0 strike price has a current bid of 25 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $30.0, but will also collect the premium, putting the cost basis of the shares at $29.75 (before broker commissions). To an investor already interested in purchasing shares of MTZ, that could represent an attractive alternative to paying $35.47/share today.

Because the $30.0 strike represents an approximate 15% 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 87%. 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 0.83% return on the cash commitment, or 5.07% annualized — at Stock Options Channel we call this the YieldBoost.

START SLIDESHOW:
Top YieldBoost Puts of Stocks Conducting Buybacks »

Below is a chart showing the trailing twelve month trading history for MasTec Inc. , and highlighting in green where the $30.0 strike is located relative to that history:

If you liked this article you might like

Possible Stock Hits, Misses in Irma's Wake

Fund Keeps Betting on Cuba in Spite of Trump Pullback

MasTec Stock Gaining on D.A. Davidson Upgrade

Bull Market Is Igniting These 4 Stocks: Extra Space Storage, DISH Network and More

Bull Market Is Igniting These 4 Stocks: DISH Network, Extra Space Storage and More