January 31st Options Now Available For NU Skin Enterprises (NUS)

Investors in NU Skin Enterprises, Inc. ( NUS) saw new options become available today, for the January 31st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NUS options chain for the new January 31st contracts and identified one put and one call contract of particular interest.

The put contract at the $74.00 strike price has a current bid of 35 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $74.00, but will also collect the premium, putting the cost basis of the shares at $73.65 (before broker commissions). To an investor already interested in purchasing shares of NUS, that could represent an attractive alternative to paying $80.71/share today.

Because the $74.00 strike represents an approximate 8% 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 78%. 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 0.47% return on the cash commitment, or 21.58% annualized — at Stock Options Channel we call this the YieldBoost.

Top YieldBoost Puts of Stocks Conducting Buybacks »

Below is a chart showing the trailing twelve month trading history for NU Skin Enterprises, Inc., and highlighting in green where the $74.00 strike is located relative to that history:

If you liked this article you might like

Herbalife, Nu Skin May Be Affected by New Chinese Regulations

Birchbox Revolutionized How We Buy Beauty Products

Take a Fresh Look at Nu Skin Enterprises

Market Recon: Crossed Wires? Hot Wire, Trip Wire, Live Wire

Nu Skin (NUS) Stock Tumbles on Downbeat Forecast