REXR November 21st Options Begin Trading

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Introduction to REXR Options Trading

Investors in Rexford Industrial Realty Inc (Symbol: REXR) have a new set of options to consider, with the November 21st expiration contracts now available. For those interested in exploring the possibilities of options trading, this development presents a potential opportunity to achieve higher premiums compared to contracts with closer expiration dates. The time value of these options plays a crucial role in determining the price an option buyer is willing to pay, making the 79 days until expiration a significant factor.

[Image: Trailing 12-month trading history for Rexford Industrial Realty Inc with the $40.00 strike highlighted]

In this context, understanding the put and call contracts available for REXR becomes essential. The YieldBoost formula, utilized by Stock Options Channel, analyzes the REXR options chain to identify contracts of particular interest. For the November 21st contracts, one put and one call contract stand out due to their potential for attractive alternatives to current market prices.

Exploring Put Contract Opportunities

The put contract at the $40.00 strike price currently has a bid of $1.35. An investor selling this put contract commits to purchasing the stock at $40.00 and collects the premium, effectively lowering the cost basis of the shares to $38.65, excluding broker commissions. For investors already interested in buying REXR shares, this could be an appealing option compared to paying $41.00 per share today.

Given that the $40.00 strike represents a roughly 2% discount to the current trading price, making it out-of-the-money by that percentage, there’s also a possibility that the put contract could expire worthless. Current analytical data suggests that the odds of this happening are approximately 58%. Stock Options Channel will continue to monitor these odds and provide updates on the contract’s performance.

[Image: Chart illustrating the potential return on the put contract]

Selling a put contract like this can be seen as a way to generate income from a potential obligation to buy the stock at a predetermined price. If the contract expires worthless, the seller retains the premium as income, which could be viewed as a 3.38% return on the cash commitment, or 15.59% annualized, known as the YieldBoost.

Delving into Call Contract Opportunities

On the calls side of the option chain, the call contract at the $45.00 strike price has a current bid of 25 cents. If an investor buys REXR shares at the current price of $41.00 and then sells this call contract as a “covered call,” they commit to selling the stock at $45.00. Including the premium collected, this could result in a total return of 10.37% if the stock is called away at the November 21st expiration, excluding dividends and broker commissions.

However, it’s essential to consider that a significant upside could be left unrealized if REXR shares experience substantial growth. Thus, examining the trailing twelve-month trading history and studying the company’s business fundamentals becomes crucial.

[Image: Trailing 12-month trading history for Rexford Industrial Realty Inc with the $45.00 strike highlighted in red]

Since the $45.00 strike represents about a 10% premium to the current trading price, making it out-of-the-money by that percentage, there’s a possibility that the covered call contract could expire worthless. In this scenario, the investor retains both the shares and the collected premium. The current analytical data indicates that the odds of this occurrence are approximately 67%.

Understanding Implied Volatility

The implied volatility for both the put and call contract examples is roughly 40%. In contrast, the actual trailing twelve-month volatility, considering the last 250 trading days and today’s price of $41.00, is calculated to be 31%. This disparity highlights the potential for premiums to be influenced by market expectations rather than historical price movements.

For investors looking to explore more put and call options contract ideas, visiting StockOptionsChannel.com can provide valuable insights and strategies. The platform offers detailed analyses and tracking of options contracts, helping investors make informed decisions.

Key Takeaways and Strategies

• Understanding Time Value: The longer the time until expiration, the higher the potential premium for options sellers.
• Analyzing Strike Prices: Contracts that are out-of-the-money offer the potential for higher returns but also come with the risk of expiring worthless.
• Volatility Considerations: The difference between implied and historical volatility can significantly affect option prices and investment strategies.
• Covered Calls and Protective Puts: These strategies can help investors manage risk and potentially increase returns, but they require careful consideration of market conditions and the investor’s goals.

Conclusion and Call to Action

In conclusion, the availability of November 21st expiration options for REXR presents investors with new opportunities to consider. Whether through selling put contracts to potentially buy shares at a discount or using covered calls to generate premiums, these strategies can be powerful tools in an investor’s arsenal. However, it’s crucial to approach these opportunities with a thorough understanding of the underlying mechanics and risks involved.

As you navigate the complex landscape of options trading, remember that knowledge and strategy are key. Stay informed, keep a close eye on market trends, and always consider your investment goals and risk tolerance. By doing so, you’ll be better equipped to make the most of the options available to you, whether it’s with REXR or other investments.

Take the first step today by diving deeper into the world of options trading. Explore the resources available at StockOptionsChannel.com, and start building a strategy that works for you. In the ever-changing market, staying ahead of the curve can make all the difference. So, don’t wait – start your journey to becoming a more informed and successful investor now.