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New Options Opportunities for HA Sustainable Infrastructure

Investors see potential in newly available options for HA Sustainable Infrastructure. Options for December 19 strike at $20 and $25 highlight attractive premiums for put and call contracts, offering investment strategies with varying risk-reward profiles.

Date: 
AI Rating:   7

Overview of New Options for HASI

The recent report indicates significant options activity for HA Sustainable Infrastructure Capital Inc (HASI) with new contracts expiring on December 19. Notably, a put option at the $20 strike price presents an opportunity for investors willing to purchase HASI shares at a potentially reduced overall cost. Selling a put at a $1.20 premium sets a cost basis of $18.80, compared to the current share price of $23.73, reflecting a notable discount.

This scenario presents a chance to enhance returns, especially given the odds of the put option expiring worthless are pegged at 74%. Should that occur, the 6.00% return from the premium equates to a 9.05% annualized YieldBoost. This is a solid short-term prospect for income-minded investors looking to enter HASI shares at a discount.

On the call side, the $25 strike call option provides a different strategy. Selling a covered call at this level collects a $2.70 premium, leading to a total return of 16.73% if the stock is called away. The odds of the call expiring worthless are 48%, allowing investors to retain both stock and premium in that event.

This information is beneficial for investors as it highlights different strategic positions — taking advantage of potential upside while managing risks through option strategies. The implied volatilities of the put (48%) and call (46%) show investor expectations about future stock movement, which can impact option pricing and investment decisions.

Conclusion for Investors

While the report does not explicitly disclose EPS, revenue growth, net income, or profit margins, the analysis emphasizes actionable insights through the options strategy. Given the strong potential yields and the significant difference between strike prices and current trading prices, investors may find appealing entry points through these put and call options.

Stocks:  HASI