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Agilent Technologies Options Trading Insights

Agilent Technologies sees new options for April 17th. Investors may find attractive opportunities through put and call contracts, with premiums suggesting potential returns. The data indicates a favorable perspective for trading strategies.

Date: 
AI Rating:   7

**Options Trading Update for Agilent Technologies (A)**: The report details new options available for Agilent Technologies, specifically focusing on put and call contracts expiring on April 17th. Investors may be drawn to these options due to potential premium gains and discounts available at different strike prices.

A significant element for investors is the put contract at the $145.00 strike, which has a current bid of $5.10. Selling this contract obligates an investor to purchase shares at $145.00, effectively reducing their cost basis to $139.90. This represents a potential 1% discount from the current share price of $146.12, appealing to those looking to enter the stock at a lower price. Furthermore, if the contract were to expire worthless, the premium collected would yield a 3.52% return on the cash commitment, which translates to 13.96% annualized, indicating an attractive opportunity.

On the call contract side, available at the $150.00 strike price with a current bid of $4.60, selling a covered call could allow an investor to secure a total return of 5.80% if the stock is called away at expiration. The 3% premium over the current market price can add significant value, especially in case of favorable stock movement. If this contract also expires worthless, investors would retain their shares and the premium collected, equating to a 3.15% additional return or 12.50% annualized.

Additionally, both options show implied volatilities of 28% and 27% respectively, which are higher than the trailing twelve month volatility of 26%. This suggests potential fluctuations in stock prices, impacting the earnings of option sellers and buyers.