From Nasdaq:

Investors in Alibaba Group Holding Ltd (Symbol: BABA) saw new options begin trading today for the February 23rd expiration. Our YieldBoost formula at Stock Options Channel has identified one put and one call contract of particular interest with the put contract at the $75.00 strike price currently at a bid of $2.37.

The call contract at the $78.00 strike price has a current bid of $1.90. If an investor was to sell-to-open that call contract as a “covered call,” they would be committing to sell the stock at $78.00, driving a potential total return of 5.79% if the stock gets called away at the February 23rd expiration.

The $75.00 strike represents an approximate 1% discount to the current trading price of the stock, meaning it is out-of-the-money by that percentage. The current odds of the put contract expiring worthless are 99%, but if it expires worthless, the premium would represent a 3.16% return on the cash commitment.

Considering the actual trailing twelve month volatility of 39%, more put and call options contract ideas worth looking at may be found on StockOptionsChannel.com. For more information, you can visit Stock Options Channel.



Read more: February 23rd Options Now Available For Alibaba Group Holding