Boston, MA 10/01/2013 (wallstreetpr) – Headquartered in Sao Paulo, Brazil, Itau Unibanco Holding SA (ADR) (NYSE:ITUB) is the banking sector company operating as a subsidiary of Itausa – InvestimentosItau SA. The company mainly operates in Commercial Banking, Consumer Credit, Foreign Business and Insurance, Life, Pension Plans and Saving Bonds segments. The company, through its subsidiaries, operates mainly in Brazil, Argentina, the United States, Switzerland and the United Arab Emirates among others.
The stock of the company has gained over 17.08% during past one month’s trade. The stock lost around 1.26% and traded in the range of $14.10 and $14.27 and closed at $14.12.
During the past week, a new option becomes available for the investors of Itau Unibanco Holding SA (ADR) (NYSE:ITUB) and the available option is with the expiration of November 16, 2013. At stock Options Channel, they identified one put and one call contract of specific interest for the new November 16, 2013 contracts.
The put contract with a strike price of $13.00 per share has an existing bid of 25 cents. This indicates that, if an investor wants to sell-to-open that put contract, they have to purchase the stock at $13.00 but at the same time he is also eligible to collect the premium, which puts the cost basis of the shares at $12.75 excluding broker commissions.
The strike price of $13.00 represents an approximate discount of 9% to the current trading price of the share which is $14.30. But, there also exists the risk that the put contract would expire worthless. The current likelihoods of that happening are 75% as per the current analytical data including greeks and implied greeks.
Now, looking at the call side of the option side, the call contract with a strike price of $16.00 per share has an existing bid of 5 cents. This indicates that, if an investor wants to sell-to-open that call contract, they have to sell the stock at $16.00.
