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Interesting SRC Call Options For April 2015

Investors in Spirit Realty Capital, Inc (Symbol: SRC) saw new options begin trading this week, for the April 2015 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 239 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the SRC options chain for the new April 2015 contracts and identified the following call contract of particular interest.

The call contract at the $12.50 strike price has a current bid of 10 cents. If an investor was to purchase shares of SRC stock at the current price level of $11.97/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $12.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.26% if the stock gets called away at the April 2015 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SRC shares really soar, which is why looking at the trailing twelve month trading history for Spirit Realty Capital, Inc , as well as studying the business fundamentals becomes important. Below is a chart showing SRC's trailing twelve month trading history, with the $12.50 strike highlighted in red:

Top YieldBoost Calls of Stocks with Insider Buying »

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.

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