Investors Eye New Call Options for RingCentral Shares

Investors are considering the potential of new call options for RingCentral Inc. The $35.00 strike price call is generating interest due to its 8.17% total return possibility if exercised. This could impact RNG stock prices positively, creating opportunities for investors.

Date: 13-02-2025

AI Rating: 7

Options Trading Insights: RingCentral Inc (Symbol: RNG) has new options available for trading, particularly noteworthy is the call contract at $35.00. This contract is attracting investor interest due to its potential for return.

The current bid price for the call contract is $2.60, while the current stock price is $34.76. If the stock is called away at expiration, investors can achieve a total return of 8.17%. Moreover, if the contract expires worthless, investors would retain their shares and benefit from an additional 7.48% return from the premium collected, amounting to a substantial 54.65% when annualized.

The strike price is out-of-the-money by approximately 1%, and there is a 46% probability that the contract will expire worthless. This detail is crucial for investors as it presents a significant upside with manageable risk.

Volatility Considerations: The call contract exhibits an implied volatility of 70%, while the actual trailing twelve month volatility is calculated at 44%. This higher implied volatility suggests that the market anticipates larger price movements for RNG, which could affect how options are priced going forward.

Investors should closely monitor these metrics as the options data can indicate market sentiment towards the underlying stock. If the volatility remains high, it may suggest ongoing uncertainty or strategic positioning in the stock.

Stocks: RNG