Hecla Mining (HL) Releases March 13th Options
Hecla Mining Company (NASDAQ: HL) has introduced new options for investors, with a focus on the March 13th expiration date. These options include both put and call contracts, offering various investment opportunities.
Details of the March 13th Options
Investors can explore a notable put contract featuring a strike price of $25.00. The current bid for this option is $1.26. By selling-to-open this put contract, investors would be obligating themselves to purchase shares at $25.00. However, they would also collect the premium, reducing the effective cost basis to $23.74, excluding broker commissions. This option represents a 4% discount from the current trading price of $26.09 per share.
The probability of this put contract expiring worthless is estimated to be 67%. This means there is a chance that investors will not have to execute the purchase, allowing them to keep the premium as a 5.04% return on the cash commitment, which annualizes to about 42.82%.
Call Contracts Overview
On the call option side, there is a contract with a $29.50 strike price, which currently has a bid of $1.50. Investors who purchase HL shares at $26.09 and sell this call as a covered call would be committed to selling the stock at $29.50. This potential strategy, excluding dividends, offers an 18.82% total return if the stock is called away at expiration.
The $29.50 strike represents a 13% premium to the current stock price. Investors should consider the associated risks, as this contract might also expire worthless. If that happens, they would retain both their shares and the collected premium, which would contribute to a 5.75% extra return, equivalent to an annualized rate of 48.85%.
Volatility and Market Trends
The implied volatility for both the put and call contracts is around 114%. In contrast, the actual trailing twelve-month volatility, based on the previous 251 trading days, is calculated to be 68%. Investors should analyze these factors when considering options trading strategies.
Conclusion
As Hecla Mining (HL) unveils these March 13th options, investors have a variety of contracts to choose from, each with their own risk and return profiles. Tracking these options can provide valuable insights into the stock’s performance and possible investment strategies. For a broader selection of options and financial insights, visit Filmogaz.com.
