Interactive Brokers Introduces New Options for 2027 Expiration

This week, the report highlighted new options available for Interactive Brokers Group Inc, potentially providing lucrative investment opportunities through options trading strategies. These developments could influence stock price movement heading into the future.

Date: 18-09-2024

AI Rating: 6

The report discusses new options introduced for Interactive Brokers Group Inc (IBKR), along with potential investment strategies for investors. The long expiration date of these options (January 2027) allows for significant time value, which can lead to higher premiums.

The put contract at a $130.00 strike price currently has a bid of $17.80. Investors willing to sell this put would have a cost basis of $112.20 per share if the stock price drops to the strike price, granting them a cash premium. The put represents a slight discount (1%) relative to the stock’s current price of $131.00, and there’s a 68% chance that the put will expire worthless, translating into a potential 13.69% return on the cash commitment, or 5.89% annualized.

From the call side, the report also mentions a $150.00 strike price contract with a bid of $19.50, which could yield a total return of 29.39% if the stock gets called away at expiration. This call represents an approximate 14% upside to the current trading price, and the odds of it expiring worthless are 45%. The YieldBoost from this strategy could be 14.89%, or 6.40% annualized.

The implied volatility for the put option is quoted at 34%, while the call has a lower implied volatility of 29%. The historical volatility based on the last year of trading is noted to be 24%. Such volatility could impact pricing strategies in the future, thereby influencing stock prices.

Stocks: IBKR