New Options Trading Insights for Thermo Fisher Scientific

A report reveals that Thermo Fisher Scientific Inc (TMO) has begun trading new options contracts for the November 15th expiration, including intriguing put and call options which could influence stock prices.

Date: 19-09-2024

AI Rating: 6

The report outlines recent trading activity for Thermo Fisher Scientific Inc (TMO), highlighting new options with specific strike prices that may influence the stock's price. Investors are looking at a put contract at a $610 strike price, which is slightly out-of-the-money, with the potential for the contract to expire worthless. Should it expire worthless, the investor could earn a premium of 2.61%, equating to an annualized return of 16.68%. This situation presents a strategic alternative for investors considering stock purchases at $616.53.

On the call option side, there is a contract at the $620 strike price. If the stock price reaches this level, it offers a potential total return of 3.64%. However, there remains a risk of losing potential upside should the stock significantly rise beyond the strike price. The 48% odds of the call contract expiring worthless further complicate the investor's decision-making process.

Regarding implied volatility, the put contract has a volatility of 24%, slightly higher than the call at 22%. The actual trailing twelve-month volatility is recorded at 21%, which provides a context for investors to assess the risk involved in trading these options.

Although the report does not provide direct data on earnings per share (EPS), revenue growth, net income, profit margins, free cash flow, or return on equity, the detailed analysis of the options suggests a stable stock price environment and potential profitability from the options trading strategy. Hence, this could lead to a favorable outlook for TMO's stock price in the near term.

Stocks: TMO