Centene Corp's Options Trade Insights for April 11 Expiration

Investors in Centene Corp (CNC) have new options available for April 11 expiration. The put and call contracts present intriguing strategies for potential buyers in this market. With various price levels and premiums to consider, it offers an attractive alternative for trading.

Date: 27-02-2025

AI Rating: 6

Options Trading Overview
The analysis discusses two new options contracts for Centene Corp (CNC) set to expire on April 11. The detailed insight into put and call contracts highlights potential strategies for investors. The put contract, struck at $58.00, currently shows a bid of 80 cents, allowing an investor to commit to buying shares at that price while keeping the premium, which lowers the effective purchase cost to $57.20. This could be viewed as a favorable decision for long-term investors looking to buy shares at a discount compared to the current market price of $58.30.

Call Contract Insights
On the other hand, the call option at $59.00, with a bid of 95 cents, allows investors to purchase shares and potentially sell them at a higher price. If shares are called away, the total return could reach 2.83%, exclusive of dividends. The contract's odds of expiring worthless stand at 49%, indicating a good chance for investors to retain both their shares and premium if the expiration does not favor them.

Overall Options Viability
Implied volatility for the put and call options stands at 37% and 38%, respectively, while actual trailing volatility calculated is at 32%. This data points to a relatively stable environment in which Centene Corp operates, with moderate expected fluctuation in stock value over the next period.

While the text offers valuable insights for options traders specifically interested in Centene Corp's current stock conditions, no specific details about EPS, revenue growth, net income, profit margins, free cash flow, or return on equity were mentioned. Therefore, no direct impact on conventional stock valuations can be discerned from this analysis.

Stocks: CNC