Elevance Health Options Insight: Potential Investment Opportunities

Elevance Health Inc offers new options with potential higher yields. Investors can explore attractive contracts as stock trades at $402.47, aiming for efficient strategies with options like puts and calls.

Date: 07-03-2025

AI Rating: 7

Options Trading Insights for Elevance Health Inc (ELV)
New options for Elevance Health Inc are now available, presenting potential opportunities for investors. The company's stock price stands at $402.47, with two noteworthy options contracts highlighted in the report, which could influence trading strategies going forward.

The put contract at a $390.00 strike price features a bid of $14.00, allowing sellers to potentially purchase shares at a lower cost basis of $376.00. This could attract buyers interested in ELV, considering it's approximately a 3% discount on the current price. Additionally, there's a substantial chance (63%) that this put contract might expire worthless, which may indicate to investors a reasonable risk-reward scenario. If it does expire worthless, the yield reflects a potential return of 3.59%, or an impressive annualized return of 18.73%.

The call contract at the $410.00 strike price offers a bid of $18.50. Engaging in a covered call at this level could provide investors with a potential total return of 6.47% if the stock is called away by expiration, aside from dividends. There's a possibility (50%) for this contract to expire worthless, allowing investors to retain their shares while also benefiting from the premium collected. Should it not reach the strike price, this contract represents an additional potential return of 4.60%, or an annualized rate of 23.98%.

Overall, while there is no extensive mention of earnings metrics such as EPS, revenue growth, or net income, the analysis of the options provides a strategic focus for investors looking at ELV. The trading dynamics may reflect broader sentiments about the stock performance and market conditions.

Stocks: ELV