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Sunrun Options Trading Insights: July Contracts Reviewed

Investors eye new Sunrun Inc options as intriguing strategies arise. The latest insights on put and call contracts indicate potential yield boosts for market players.

Date: 
AI Rating:   7

Options Trading Insights: The newly available options for Sunrun Inc (RUN) present significant investment strategies that could impact stock prices. The introduction of July 3rd expiration options includes a noteworthy $6.00 put contract and a $9.00 call contract that may attract the attention of investors.

The put option, with a $6.00 strike price and a current bid of 49 cents, allows an investor to purchase RUN shares at an effective cost basis of $5.51. This presents a potential discount of 9% from the current trading price of $6.61, making this an appealing entry point for potential buyers. With a 65% chance of the put option expiring worthless, investors can anticipate an 8.17% return on cash commitment, which translates to a projected annualized return of 70.97%. This relatively high return could reinforce bullish sentiment around the stock, especially for those seeking to leverage low entry points.

Similarly, the call option at a $9.00 strike price offers another buying strategy as it anticipates a potential 39.33% return should RUN stock reach or exceed that price by the expiration date. The option's current bid of 21 cents indicates investor interest, but a 70% chance exists that the contract may expire worthless, meaning investors retain both shares and the premium collected from selling the call. Such a possibility underscores a diversified approach to stock positions, allowing investors to benefit from multiple outcomes.

It is also significant to note the high implied volatility for both put (124%) and call (107%) options compared to an actual volatility of 101%, suggesting that the market forecasts notable price fluctuations for RUN in the immediate future. Overall, the speculative nature of the options combined with favorable odds could induce heightened activity in RUN’s stock price in the near term.

Stocks:  RUN