Investors in Lowe’s Companies Inc. (Symbol: LOW) saw new options trading begin today, with contracts expiring on March 6th. Notable contracts include a put at the $275.00 strike price, currently bid at $7.15, and a call at the $280.00 strike price, bid at $8.70. The put option offers a potential purchase price of $267.85 per share, representing a 1% discount to the current trading price of $277.47.
The current odds of the $275.00 put contract expiring worthless stand at 57%, which could yield a 2.60% return or 22.07% annualized if it does. Conversely, the call contract offers a maximum total return of 4.05% if exercised, with a 51% chance of expiring worthless, allowing investors to retain their shares and the collected premium. Implied volatilities for the put and call options are 28% and 29%, respectively, while the actual trailing twelve-month volatility is calculated at 25%.
