Avnet Inc Options Trading Insights and YieldBoost Opportunities

Investors in Avnet Inc received insight into new options available for August 2025. The potential for higher returns through put and call contracts is highlighted, with strategic insights on premium collection and possible outcomes. This report offers a detailed look at trading strategies for AVT.

Date: 20-12-2024

AI Rating: 6

The report provides a detailed overview of new options for Avnet Inc (AVT) and the strategies available for investors. It focuses on both put and call contracts set to expire in August 2025, presenting various trading opportunities.

The primary opportunity lies within the put contract priced at a $40 strike. Given that the current trading price is $53.51, this put represents a 25% discount, raising the appeal for investors looking to buy AVT shares indirectly. If sold-to-open, the investor would set a cost basis of $39.55 after collecting a 45 cents premium. This setup highlights an attractive alternative buy opportunity for those interested in AVT, particularly if the option expires worthless, which has a 92% likelihood according to current analytical data.

Moreover, the call contract at $55 offers insights into a covered call strategy. Investors purchasing shares at the current price and selling the call could anticipate a total return of 10.45% if holdings are called away. However, there's a 48% chance that the contract might expire worthless, allowing investors to retain both their shares and premium collected. This contract provides a 7.66% added return and an annualized 11.75%, contributing to the attractiveness of the covered call strategy.

Additionally, the implied volatilities—34% for puts and 29% for calls—indicate a relatively stable market environment compared to the trailing twelve-month volatility of 24%. Overall, the detailed breakdown of options provides insight for investors considering AVT's potential for investment.

Stocks: AVT