Celsius Holdings Options Trading: Insights for Investors

Celsius Holdings sees new options trading. The $21 put and $22 call offers intriguing possibilities for investors. Each strike price has distinct implications for stock trading strategies, impacting potential returns and commitments.

Date: 13-02-2025

AI Rating: 7

Investor Interest in Options Trading

This report highlights the initiation of new options trading for Celsius Holdings Inc (CELH), focusing on April contracts with notable put and call options. Such developments can significantly influence trading behavior and stock price momentum.

The $21 put option commands a bid of 52 cents, allowing investors to commit to purchasing shares at $21.00 while receiving a premium that reduces the effective cost basis to $20.48 per share. This price point represents approximately a 3% discount relative to the current market price of $21.62.

The 60% chance of the put option expiring worthless suggests a favorable potential outcome for investors, as it implies that they might keep the premium as profit without needing to acquire shares.

Call Option Insights

On the call option side, the $22 contract is priced at $1.84, offering a covered call strategy that could yield a total return of 10.27% if the stock is called at expiration. This represents a slight 2% premium over the current trading price, indicating a moderate level of risk for investors choosing this strategy. With a 44% chance of the call expiring worthless, investors could benefit both from the premium and potential upside in stock price.

Volatility Considerations

The implied volatility metrics indicate higher perceived risk in the call option (99%) compared to the put option (66%). The actual trailing twelve-month volatility at 60% provides context for these options and suggests that while there could be significant price movement, it might not correspond directly to a drastic change in stock value.

With both options strategies available, investors should consider their risk profile, objectives, and market conditions before engaging in trading CELH options.

Stocks: CELH