The premium on Las Vegas Sands $10 January 2011 call options is $9.40, with an intrinsic value of only $6.70. It seems likely that the writer of covered calls will earn the $2.70 balance upon expiration, which would work out to a 37% return ($2.70 / $7.30 debit).
Las Vegas Sands can raise low cost funds through the sale of initial public offerings for its Asian operations.
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A quick question: what tool are you using to analyze options?
I’m not sure what you mean by the word “analyze.” I find opportunities the old fashioned way–looking at premiums randomly–which is pretty inefficient. The market makers can definitely do better with all their sophisticated technology. But sometimes overpricings are so obvious they hit you over the head with a baseball bat.
Got it. That actually was my question – whether you use some kind of tool or do it manually. I should have been more specific. Thanks!