First Week of August 21st Options Trading For QTS Realty Trust (QTS)

Investors in QTS Realty Trust Inc (QTS) saw new options become available this week, for the August 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the QTS options chain for the new August 21st contracts and identified the following put contract of particular interest.

The put contract at the $35.00 strike price has a current bid of 10 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $35.00, but will also collect the premium, putting the cost basis of the shares at $34.90 (before broker commissions). To an investor already interested in purchasing shares of QTS, that could represent an attractive alternative to paying $37.27/share today.

Because the $35.00 strike represents an approximate 6% 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 73%. 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 0.29% return on the cash commitment, or 1.97% annualized — at Stock Options Channel we call this the YieldBoost.

START SLIDESHOW:
Top YieldBoost Puts of Stocks with Recent Secondaries »

Below is a chart showing the trailing twelve month trading history for QTS Realty Trust Inc, and highlighting in green where the $35.00 strike is located relative to that history:

Loading+chart++2015+TickerTech.com

The implied volatility in the put contract example above is 27%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $37.27) to be 24%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

More from Stocks

Markets Look Confused After Latest Beating

Markets Look Confused After Latest Beating

General Electric Expulsion From Dow Symbolizes Unsettled Week in Markets

General Electric Expulsion From Dow Symbolizes Unsettled Week in Markets

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In