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Essential Utilities Inc (Symbol: WTRG) has released new options for the November 21st expiration, including a noteworthy put contract at a strike price of $35.00. Currently, the contract has a bid price of 50 cents, allowing investors to purchase shares at an effective cost basis of $34.50, compared to the current trading price of $37.19 per share.
This $35.00 strike price represents a 6% discount to the current share price, and data indicates a 75% chance that the put contract may expire worthless. Should this occur, the premium would yield a return of 1.43% on the cash commitment, translating to an annualized return of 8.14%. The implied volatility for this contract is 22%, aligning with the actual trailing twelve-month volatility.
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