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Texas Roadhouse Options Trading Insights for April Expiration

Texas Roadhouse options are now trading, revealing intriguing investment strategies. Investors can consider put and call contracts that may offer attractive alternatives as stock prices fluctuate.

Date: 
AI Rating:   6
Options Trading Analysis for TXRH:
Texas Roadhouse, Inc. (TXRH) recently saw new options available for trading, indicating potential shifts in investor sentiment and stock performance. The options analysis shows a put contract at a $175.00 strike, which currently has a bid of $4.50. Selling this put might interest investors looking to acquire shares at a more favorable price—$170.50 after the premium is factored in. The current trading price is $176.81, thus providing a 1% discount opportunity, albeit with a 55% chance of the contract expiring worthless. This presents a risk-reward scenario that some investors may find appealing.

The call contract at the $180.00 strike price has a bid of $2.65. Investors purchasing shares of TXRH at the current price could opt for a covered call strategy, selling the call and committing to sell the stock at $180.00. This would yield a potential return of 3.30% (excluding dividends) if the stock gets called away. The $180.00 strike price represents a 2% premium to the current price, and the contract has a 58% chance of expiring worthless, allowing investors to retain their shares and the premium involved.

It's noteworthy that the implied volatilities are 28% for the put and 24% for the call. This showcases differing expectations in stock price movement between the two options. The actual trailing twelve-month volatility sits at 23%, providing context to these implied values. While no specific EPS, revenue growth, net income, or profit margins data was discussed in this report, the options trading strategies reflect a nuanced understanding of current market conditions and investor expectations.
Stocks:  TXRH