The implied volatility in the put contract example is 17%, while the implied volatility in the call contract example is 15%. Should the covered call contract expire worthless, the premium would represent a 0.72% boost of extra return to the investor, or 4.30% annualized, which we refer to as the YieldBoost.Ĭlick here to find out the Top YieldBoost Calls of the S&P 500 » On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 69%.
Considering the fact that the $50.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected.
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