Helmerich & Payne, Inc. (HP) introduced new options for an October 17th expiration, notably a put contract at a $17.50 strike price with a current bid of $0.30. Investors selling this contract would commit to purchasing HP stock at $17.50, effectively lowering their cost basis to $17.20, compared to the current trading price of $17.73.
The $17.50 strike represents a 1% discount from the current price, with a 58% probability of the put option expiring worthless. If it does expire worthless, the premium would yield a 1.71% return on the cash commitment or 9.78% annualized. The implied volatility for this put contract is 72%, while the actual trailing volatility over the past year is calculated at 55%.
