New Options Trading Opportunities for Plug Power Investors

Investors are keenly watching Plug Power Inc as new call options for January 2025 begin trading. The current pricing details suggest a potential return of 11.40%, sparking interest among traders. These developments may significantly influence PLUG's stock price in the near future.

Date: 21-11-2024

AI Rating: 7

The report discusses new options for Plug Power Inc (PLUG), indicating significant investor interest as new call contracts for January 2025 become available. The highlighted call contract at the $2.00 strike price, with a bid of 15 cents, is noteworthy for investors considering a covered call strategy.

As PLUG shares trade at $1.93, a commitment to sell at $2.00 reflects a potential return of 11.40% if the shares are called away at expiration. This is an attractive proposition, especially for those willing to engage in covered call writing, providing an opportunity to earn additional income from the premium collected.

Moreover, if the covered call expires worthless, the investor retains both the shares and the premium, leading to a 7.77% extra return, or an impressive 65.97% annualized YieldBoost. Such potential returns can be quite appealing in the current market environment.

Volatility is highlighted, with implied volatility for the call contract at 99% and actual trailing twelve month volatility at 96%. This high volatility could influence trading strategies as it may create opportunities for higher returns but also comes with increased risk.

Stocks: PLUG