, 2022-12-08 12:38:00,
Investors in Tencent Music Entertainment Group (Symbol: TME) saw new options available today, expiring in January 2023. A stock options channelour YieldBoost formula has searched up and down the TME options chain for the new January 2023 contracts and identified one put and one call contract of particular interest.
The put contract at the strike price of $7.00 has a current bid of 36 cents. If an investor were to sell to open that sales contract, they agree to buy the shares at $7.00, but will also collect the premium, putting the cost basis of the shares at $6.64 (before brokers’ commissions). For an investor already interested in buying TME shares, that could present an attractive alternative to paying $7.87 per share today.
Because the $7.00 strike represents an approximate 11% discount from the stock’s current trading price (in other words, you’re out of the money by that percentage), there’s also the possibility that the sales contract could expire worthless. . Current analytical data (including Greek and implicit Greek) suggests that the current odds of that happening are 99%. The Stock Options Channel will track those probabilities over time to see how they change by posting a graph of those numbers on our website under the contract details page for this…
To read the original article from news.google.com, Click here