text: Investors in Invitae Corp (Symbol: NVTA) saw new options begin trading today, for the June 2021 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 756 days until expiration the newly trading contracts represent a potential 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 NVTA options chain for the new June 2021 NVTA, that could represent an attractive alternative to paying $17.84 14.00% return on the cash commitment, or 6.76% annualized — at Stock Options Channel we call this the YieldBoost.
  Below is a chart showing the trailing twelve month trading history for Invitae Corp, and highlighting in green where the $15.00 strike is located relative to that history:
  Turning to the calls side of the option chain, the call contract at the $20.00 strike price has a current bid of $6.00. If an investor was to purchase shares of NVTA stock at the current price level of $17.84/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $20.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 45.74% if the stock gets called away at the June 2021 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if NVTA shares really soar, which is why looking at the trailing twelve month trading history for Invitae Corp, as well as studying the business fundamentals becomes important. Below is a chart showing NVTA's trailing twelve month trading history, with the $20.00 strike highlighted in red:
  Considering the fact that the $20.00 strike represents an approximate 12% 33.63% boost of extra return to the investor, or 16.24% annualized, which we refer to as the YieldBoost.
  The implied volatility in the put contract example is 98%, while the implied volatility in the call contract example is 89%.
  Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $17.84) to be 69%..