First Week Of July 17th Options Trading For Hannon Armstrong Sustainable Infrastructure Capital (HASI)

Investors in Hannon Armstrong Sustainable Infrastructure Capital Inc ( HASI) saw new options become available this week, for the July 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the HASI options chain for the new July 17th contracts and identified the following put contract of particular interest.

The put contract at the $20.00 strike price has a current bid of 15 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.00, but will also collect the premium, putting the cost basis of the shares at $19.85 (before broker commissions). To an investor already interested in purchasing shares of HASI, that could represent an attractive alternative to paying $20.48/share today.

Because the $20.00 strike represents an approximate 2% 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 57%. 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 0.75% return on the cash commitment, or 5.95% annualized — at Stock Options Channel we call this the YieldBoost.

START SLIDESHOW:
Top YieldBoost Puts of the Mortgage REITs »

Below is a chart showing the trailing twelve month trading history for Hannon Armstrong Sustainable Infrastructure Capital Inc, and highlighting in green where the $20.00 strike is located relative to that history:

If you liked this article you might like

5 Toxic Stocks to Watch

Here's Why You Should Sell Gilead, PPG, 3 More Toxic Stocks Before It's Too Late

Infrastructure REITs Are Leading the Way: Here Is One to Buy Now

Q4 Preview: What Analysts Expect From the World Economy, the U.S. Election, and More This Quarter

Hannon Armstrong: The Most Promising REIT You Can Find