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October 28 Dave & Busters Entertainment Options Available

Investors at Dave & Busters Entertainment Inc (Symbol: PLAY) saw new options available today with an October 28th expiration. On the Stock Options Channel, the YieldBoost formula looked at his PLAY options chain for the new contracts on Oct. 28, and of particular interest he identified one put contract and he one call contract.

The current bid for the put contract with a strike price of $39.00 is $2.76. If the investor sells the put contract, they promise to buy the stock for his $39.00, but also recover the premium, making the cost basis of the stock his $36.24 (before broker fees) . For investors already interested in buying PLAY shares, this could be a more attractive alternative than currently paying $39.35 per share.

A strike price of $39.00 represents a discount of about 1% 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 is a 7.08% return on the cash commitment, or 51.66% annualized.In stock option channels, this yield boost.

Below is a chart showing Dave & Busters Entertainment Inc’s trading history over the past 12 months, highlighting in green where the $39.00 strike is for that history.


Looking at the call side of the options chain, the current bid for the call contract with a $40.00 strike is $2.63. If an investor buys his PLAY stock at the current price level of his $39.35/share and opens the call contract as a “covered call” sell toe, they sell the stock at his $40.00 I promise to Considering that the seller of the call also recovers the premium, if the stock were called on his Oct. 28 maturity (before brokerage fees), that would be a total return of 8.34% (excluding dividends, if any). increase. Of course, if PLAY’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 Dave & Busters Entertainment Inc’s trading history over the past 12 months. Below is a chart showing PLAY’s trading history over the past 12 months, with the $40.00 strike highlighted in red.

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Considering the fact that a strike of $40.00 represents a premium of about 2% to the current stock trading price (i.e. is out of the money by that percentage), if the covered call contract is then an investment The house will remain with its 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 6.68% increase in additional return to investors, or his 48.79% 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 $39.35) is calculated as 63%. 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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