Interesting PVG Call Options For January 2019

Investors in Pretium Resources Inc ( PVG) saw new options become available today, for the January 2019 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 795 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the PVG options chain for the new January 2019 contracts and identified the following call contract of particular interest.

The call contract at the $10.00 strike price has a current bid of 45 cents. If an investor was to purchase shares of PVG stock at the current price level of $8.01/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $10.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 30.46% if the stock gets called away at the January 2019 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if PVG shares really soar, which is why looking at the trailing twelve month trading history for Pretium Resources Inc, as well as studying the business fundamentals becomes important. Below is a chart showing PVG's trailing twelve month trading history, with the $10.00 strike highlighted in red:

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