Murphy Oil Corp Options Trading Begins with Attractive Put

Investors now have access to new options for Murphy Oil Corp, particularly a put contract at a $35 strike price, which presents a favorable entry point to acquire shares. The options activity could influence the stock price and investor sentiment.

Date: 19-09-2024

AI Rating: 7

The report discusses newly available options for Murphy Oil Corp (MUR), highlighting a put contract at a $35.00 strike price. This put option has a current bid of $1.40, allowing investors to potentially purchase MUR shares at a reduced cost basis of $33.60 if they choose to sell-to-open the contract.

Since this strike price offers a 2% discount compared to the current trading price of $35.88/share, the attractiveness of this option may sway investors looking for exposure to MUR. The report indicates a 59% chance that the put contract will expire worthless, meaning that if it does, investors could see a 4.00% return on their cash commitment, annualized to 25.60%. This attractive yield can entice more investors into the stock.

Furthermore, the implied volatility of 50% versus the actual historical volatility of 27% may also affect investor sentiment. Higher implied volatility can suggest expectations of stock price fluctuations, which may deter or attract traders based on their risk profiles.

Stocks: MUR