February 2021 options now available for SQM

At Stock Options Channel, a put and a call contract for Sociedad Quimica y Minera de Chile (SQM) have been identified. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $40.00 but will also collect the premium, putting the cost basis of the shares at $39.10 (before broker commissions). To an investor already interested in purchasing shares of SQM, that could represent an attractive alternative to paying $47.01/share today. For the call contract, if an investor was to purchase shares of SQM stock at the current price level of $47.01/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $48.00.

Source: Nasdaq