BILL Options Contract Analysis and Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13h ago
0mins
Source: NASDAQ.COM
- Put Option Appeal: The current bid for the $43.00 put option is $1.80, and if an investor sells this contract, they would effectively purchase the stock at a cost basis of $41.20, making it an attractive alternative compared to the current price of $43.80, potentially drawing more investors.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 4.19% return on cash commitment, equating to an annualized return of 35.57%, highlighting the high yield potential of this investment strategy.
- Call Option Returns: The $46.00 call option has a current bid of $2.00, and if an investor buys the stock at $43.80 and sells this contract, they could achieve a total return of 9.59% if the stock is called away at expiration, demonstrating the profitability of this strategy.
- Risk-Reward Trade-off: The $46.00 call option has a 51% chance of expiring worthless, allowing investors to retain both their shares and the premium collected, thereby enhancing the flexibility and yield potential of their investment.
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Analyst Views on BILL
Wall Street analysts forecast BILL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BILL is 60.80 USD with a low forecast of 43.00 USD and a high forecast of 84.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
11 Buy
7 Hold
0 Sell
Moderate Buy
Current: 46.550
Low
43.00
Averages
60.80
High
84.00
Current: 46.550
Low
43.00
Averages
60.80
High
84.00
About BILL
BILL Holdings, Inc. provides a financial operations platform for small and midsize businesses (SMBs). The Company offers software-as-a-service, cloud-based payments, and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency. Its artificial intelligence (AI)-enabled financial software platform creates seamless connections between its customers, their suppliers, and their clients. Businesses on its platform generate and process invoices, streamline approvals, make and receive payments, manage employee expenses, sync with their accounting system, foster collaboration, and manage their cash flow. Its integrated platform also includes BILL Spend and Expense, its spend and expense management product, which provides a solution for businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BILL Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $43.00 put option is $1.80, and if an investor sells this contract, they would effectively purchase the stock at a cost basis of $41.20, making it an attractive alternative compared to the current price of $43.80, potentially drawing more investors.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 4.19% return on cash commitment, equating to an annualized return of 35.57%, highlighting the high yield potential of this investment strategy.
- Call Option Returns: The $46.00 call option has a current bid of $2.00, and if an investor buys the stock at $43.80 and sells this contract, they could achieve a total return of 9.59% if the stock is called away at expiration, demonstrating the profitability of this strategy.
- Risk-Reward Trade-off: The $46.00 call option has a 51% chance of expiring worthless, allowing investors to retain both their shares and the premium collected, thereby enhancing the flexibility and yield potential of their investment.
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