July 17th Options Now Available For TETRA Technologies (TTI)

Investors in TETRA Technologies, Inc. (TTI) saw new options begin trading today, for the July 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the TTI options chain for the new July 17th contracts and identified the following call contract of particular interest.

The call contract at the $7.50 strike price has a current bid of 5 cents. If an investor was to purchase shares of TTI stock at the current price level of $6.58/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 (excluding dividends, if any) of 14.74% if the stock gets called away at the July 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if TTI shares really soar, which is why looking at the trailing twelve month trading history for TETRA Technologies, Inc., as well as studying the business fundamentals becomes important. Below is a chart showing TTI's trailing twelve month trading history, with the $7.50 strike highlighted in red:

Loading+chart++2015+TickerTech.com

Considering the fact that the $7.50 strike represents an approximate 14% 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 65%. 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 0.76% boost of extra return to the investor, or 4.62% annualized, which we refer to as the YieldBoost.

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

The implied volatility in the call contract example above is 63%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $6.58) to be 57%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

More from Stocks

Dow Skids and Stocks Fall Hard as Earnings Disappoint, Caterpillar Tumbles

Dow Skids and Stocks Fall Hard as Earnings Disappoint, Caterpillar Tumbles

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Spotify Announces Major Upgrade to Free Mobile App

Spotify Announces Major Upgrade to Free Mobile App

Looks like Coca-Cola's M&A Strategy Is Paying Off

Looks like Coca-Cola's M&A Strategy Is Paying Off

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug