UPS Begins Trading March 27th Options

On March 27th, new options for United Parcel Service Inc. (UPS) began trading, marking a significant event for investors. The options chain revealed intriguing opportunities for both put and call contracts, attracting the attention of traders.

Key Options for March 27th Expiration

Among the newly listed options, a put contract with a strike price of $113.00 caught investors’ interest. This contract currently has a bid of $2.21. Selling this put would obligate an investor to buy UPS stock at $113.00, while collecting the premium would result in a cost basis of approximately $110.79 per share, factoring in commissions.

• Current UPS stock price: $115.81/share
• Put contract strike price: $113.00 (approximately 2% discount)
• Probability of expiration worthless: 60%
• YieldBoost return if expired worthless: 1.96% or 14.29% annualized

This approach may appeal to those looking to acquire shares of UPS at a lower price than the current market value. The analytical data shows a 60% chance that the put contract could expire without value, which could benefit risk-tolerant investors.

Call Contract Opportunities

In addition to the put options, a call contract with a strike price of $120.00 is also available, currently listed with a bid of $2.25. Should an investor buy UPS stocks at $115.81 and sell this call contract, they would commit to selling the shares at $120.00.

• Strike price for the call contract: $120.00 (approximately 4% premium)
• Potential total return (if called away): 5.56% (excluding dividends)
• Probability of expiration worthless: 60%
• YieldBoost return if expired worthless: 1.94% or 14.19% annualized

Investors need to consider the potential gains versus the risks of leaving upside on the table. If the UPS stock price rises significantly, they might lose the opportunity to profit from future increases.

Volatility Analysis

The implied volatility for the put contract is currently at 32%, while the call contract is at 31%. In contrast, the historical volatility over the past year is calculated at 30%. This information is crucial for traders when assessing options strategies and making informed decisions.

For more details and ongoing updates on options trading for UPS, investors can visit Filmogaz.com, where insights into contract details and changing probabilities will be published.