New MET Options Trading May Attract Investors Before April 17th

New options for MetLife Inc have begun trading, potentially offering attractive investment opportunities. As premiums rise, investors may benefit from both put and call contracts that present interesting strategies as expiration approaches.

Date: 14-01-2025

AI Rating: 6

Trading Opportunities for MET
MetLife Inc has recently launched new options, providing unique trading opportunities for investors. The report highlights a put contract with a strike price of $80.00, which offers a premium of 90 cents. By selling to open this put, an investor commits to purchasing MET shares at $80.00, effectively lowering their cost basis to $79.10. This reflects a 3% discount to the current price of $82.42, making it appealing for those looking to enter into the stock at a lower price. The odds of this contract expiring worthless stand at 61%. If it does, the premium results in a 1.12% return on the cash commitment, or an annualized yield of 4.42%.

Call Options Analysis
On the call side, a contract with an $85.00 strike price bids at $1.10. This would allow an investor to sell the stock if shares reach this price, providing a total return of 4.46% when combined with the premium collected. However, if the call expires worthless, the investor retains both stock and premium, potentially realizing a 1.33% yield boost or an annualized return of 5.24%. Current odds of this scenario occurring are reported at 58%.

Volatility Considerations
The report indicates that the implied volatility for both the put and call contracts is around 25%, while the actual trailing twelve-month volatility is calculated at 22%. This data is essential as it guides investors in assessing risk and potential profit from trading these options for MetLife Inc. Given this information, potential investors may find these options attractive, both as a means of acquiring shares at a discount and as a strategy for generating additional returns.

Stocks: MET