Raymond James Financial Options Present Attractive Opportunities

A recent report highlights new options for Raymond James Financial Inc (RJF), showcasing potentially lucrative contracts with key insights into their time value. Investors can explore selling put or call options at promising strike prices, enhancing their investment strategies and returns.

Date: 19-09-2024

AI Rating: 7

The report discusses new options contracts available for Raymond James Financial Inc (RJF), which could have a direct impact on the stock's price movements. Options trading can create volatility depending on how investors react to these contracts.

Key observations include:

Put Contract: The $115.00 strike put has a current bid of $5.10. Selling this put enables investors to purchase stock at a reduced cost basis of $109.90, which is approximately a 7% discount off the current share price of $123.25. Should this contract expire worthless, investors may see a yield of about 4.43% on their cash commitment, translating to an annualized return of 6.77%.
Call Contract: The $130.00 strike call has a current bid of $5.80. If an investor opts for this contract while purchasing shares at $123.25, they would secure a total return of 10.18% if the shares are called away. In cases where the call expires worthless, investors retain their shares along with the premium collected, yielding a potential boost of 4.71% or an annualized return of 7.19%.
Implied Volatility: The put contract exhibits an implied volatility of 27% and the call has an implied volatility of 24%. Both figures indicate the expected volatility in the stock price, affecting pricing for options contracts.

Overall, if these options contracts are leveraged strategically, they could positively influence stock prices through increased investor activity and confidence.

Stocks: RJF