Investors in Apartment Investment & Management Co. (Symbol: AIV) saw new options become available today, for the April 19th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AIV options chain for the new April 19th contracts and identified the following call contract of particular interest.
The call contract at the $30.00 strike price has a current bid of 40 cents. If an investor was to purchase shares of AIV stock at the current price level of $29.72/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $30.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.29% if the stock gets called away at the April 19th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AIV shares really soar, which is why looking at the trailing twelve month trading history for Apartment Investment & Management Co., as well as studying the business fundamentals becomes important. Below is a chart showing AIV's trailing twelve month trading history, with the $30.00 strike highlighted in red:
Top YieldBoost Calls of the REITs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
