Investors in Perimeter Solutions Inc (Symbol: PRM) gained access to new options contracts with a December 2026 expiration on [date]. Notably, a put contract at the $25.00 strike price has a current bid of $1.70, allowing investors to potentially purchase shares at an effective cost basis of $23.30, representing a 13% discount from the current trading price of $28.90. The likelihood of this put contract expiring worthless is estimated at 73%, offering a possible 6.80% return on cash commitment, or 6.69% annualized.
Additionally, a call contract at the $30.00 strike price is available with a current bid of $3.90. If an investor buys shares at $28.90 and sells this call, the total return could reach 17.30% if the stock is called away by expiration. This strike is approximately 4% above the current trading price, with a 41% chance of expiring worthless, providing a 13.49% additional return if retained, or 13.28% annualized.
Implied volatilities for the put and call contracts stand at 50% and 48%, respectively, while actual trailing volatility is calculated at 48% based on prior closing values.
