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October 28 Caesars Entertainment Options Available

Investors at Caesars Entertainment Inc (Symbol: CZR) have confirmed that a new option expiring on 28 October began trading today. On the Stock Options Channel, the YieldBoost formula scans his CZR options chain and he searches for the new Oct. 28 contract and identifies his one put and his one call contract of particular interest. did.

The current bid for the put contract with a strike price of $45.00 is $3.70. If an investor sells and opens that put contract, they promise to buy the stock for his $45.00, but also recover the premium, reducing the cost basis of the stock to $41.30 (before broker fees). to For investors already interested in buying CZR shares, this could be a more attractive alternative than currently paying $45.72 per share.

A strike price of $45.00 represents a discount of about 2% to the stock’s current trading price (that is, out of the money by that percentage), so it is also possible that the put contract will expire worthless. Current analytical data (including Greek and implied Greek) currently suggests a 99% chance. The Stock Options Channel tracks these odds over time to see how they change and publishes charts of these numbers on its website under the contract details page for this contract. increase.If the contract expires at no value, the premium would be an 8.22% return on cash commitments, or an annualized rate of 60.02% — Stock option channels allow this to be yield boost.

Below is a chart showing Caesars Entertainment Inc’s trading history over the past 12 months, highlighting in green where the $45.00 strike is for that history.


Looking at the calling side of the options chain, the current bid for the call contract with a $46.00 strike is $4.15. If an investor buys his CZR shares at the current price level of $45.72/share and opens the call contract as a “covered call,” they sell the shares at his $46.00. I promise Considering that the seller of the call also recovers the premium, if the stock were called on his Oct. 28 maturity (before brokerage fees), it would have resulted in a total return of 9.69% (excluding dividends, if any). increase. Of course, if CZR’s stock price surges, it could leave a lot of upside. That’s why it’s important to study the business fundamentals by looking at Caesars Entertainment Inc’s trading history over the past 12 months. Below is a chart showing CZR’s trading history over the past 12 months, with the $46.00 strike highlighted in red.

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Considering the fact that the $46.00 strike represents a premium of about 1% to the current stock trading price (i.e. it is out of the money by that percentage), if the covered call contract is then , the investor will leave his stock and premium collected. Current analytical data (including Greek and implied Greek) currently suggests that chance is 99% for him. On our website under the contract details page for this contract, the Stock Options Channel tracks these odds over time to see how the odds change and chart those numbers. Publish (the trading history of the options contract is also charted). If the covered call contract expires at no value, the premium represents his 9.08% increase in additional return to investors, or his 66.26% annualized. yield boost.

On the other hand, the actual volatility over the last 12 months (taking into account the closing prices of the last 252 trading days and today’s price of $45.72) is calculated as 64%. Visit StockOptionsChannel.com for more interesting put and call option contract ideas.

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The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

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