New Options Trading Opportunities for Virtu Financial (VIRT)

The report highlights new options for Virtu Financial Inc - Class A (VIRT). Investors can consider selling put and call contracts, which may lead to attractive returns or premium collections, influencing VIRT's stock price dynamics.

Date: 11-09-2024

AI Rating: 7

The report discusses new options that started trading for Virtu Financial Inc - Class A (Symbol: VIRT), including details on put and call contracts for March 2025 expiration. These options present different investment strategies for options traders, potentially affecting the stock price of VIRT.

For the put contract, with a strike price of $30.00 and a current bid of $2.45, an investor selling to open this contract would have a cost basis of $27.55 when factoring in the premium earned. This could represent an attractive opportunity, especially considering the current share price of $30.69. The put option is approximately 2% out-of-the-money. The report indicates a current odds of 60% for this contract to expire worthless, which could yield an 8.17% return on cash commitment or 15.61% annualized if successful.

On the call side, the $31.00 strike price has a bid of $2.95. If an investor buys VIRT shares at $30.69 and sells this call, there is the potential for a total return of 10.62% if VIRT is called away at expiration. This option is approximately 1% out-of-the-money, with a 45% chance of expiring worthless, allowing the investor to keep both the shares and the premium, equating to a 9.61% boost or 18.37% annualized.

Both the implied volatility for the put and call contracts is around 35%, with actual trailing volatility calculated at 34%. While specifics regarding Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow, or Return on Equity were not directly mentioned in the report, the potential for options strategies can lead to price fluctuations in VIRT’s stock, affecting investor sentiment and stock valuation.

Stocks: VIRT