HEICO Corp Options Trading Insights for April Expiration

New options are now trading for HEICO Corp, presenting investors attractive opportunities. Strategies including put and call contracts could influence stock performance significantly.

Date: 20-02-2025

AI Rating: 7

Options Trading Analysis for HEICO Corp (HEI)

HEICO Corp has introduced new put and call options with strike prices of $220.00 and $230.00 respectively, providing various investment strategies for investors. The put contract at $220.00 allows investors to purchase the stock at a cost basis of $211.20 by collecting a premium of $8.80. This alternative offers a potential discount of approximately 1% to the current trading price of $223.15. The possibility of the put option expiring worthless stands at 58%. If realized, this could yield a return of 4.00%, annualized at 26.09%.

The covered call on the $230.00 strike creates a commitment to sell stock, providing an estimated total return of 6.52% if triggered at the expiration date. This strike is about 3% above the current trading price. Similar to the put option, there's a 57% chance this contract could also expire worthless, allowing the investor to retain both their shares and the premium collected, resulting in a potential 3.45% boost in overall return, annualized at 22.51%.

Furthermore, the implied volatility for the put contract is 32%, while the call contract shows a slightly lower implied volatility of 31%. The actual trailing twelve month volatility is calculated at 23%, which is considerably lower than the implied figures, indicating that the options may be perceived more volatile than the stock's recent performance suggests.

Stocks: HEI