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Moelis & Company Options Trading Points to Attractive Picks

Moelis & Company's new options trading presents opportunities. A June 20 put at $45 offers an attractive entry point, while a call at $55 may provide upside potential. Investors should consider these factors for potential stock price movements.

Date: 
AI Rating:   7

Options Trading Highlights: Moelis & Company (Symbol: MC) has recently introduced options for June 20th expiration, offering put and call contracts that present intriguing opportunities for professional investors. The analysis of these options provides insights into price movements and investor sentiment.

One notable aspect is the $45.00 strike put contract, which currently has a bid of $1.25, positioning the cost basis to purchase shares effectively at $43.75, given the current trading price of $50.60. This represents an approximate 11% discount from the current share price.

The attractiveness of this put option can potentially lead to heightened interest among investors who seek entry points below the current market price, influencing overall stock demand and price.

The annualized return on this premium is notably appealing at 17.18%, illustrating the efficiency of using options strategies to enhance returns during investments. With a 69% chance of the contract expiring worthless, there lies an element of reduced risk for investors.

On the call side, the $55.00 strike priced call with a bid of 55 cents implies a commitment to sell shares at a premium while simultaneously keeping the collected premium. Investors could benefit from a total potential return of 9.78% should the option be exercised.

This anticipated return could make the stock relevant for bullish investors, as the probability of the call expiring worthless is also notably significant at 66%. Such options strategies can engage investor interest and impact stock volatility positively.

The implied volatility of these contracts is 62% for the put and 51% for the call, demonstrating a pronounced expectation of market movement surrounding MC's stock in the near term, which could heighten trading activity and potentially affect stock prices.

While specific fundamental indicators such as EPS, revenue growth, and profit margins are not addressed in the report, the stock's current framework indicates an environment conducive to making strategic investment decisions based on price movements rather than direct financial performance metrics.

Stocks:  MC