Investors in Ivanhoe Electric Inc (IE) saw new options begin trading today, set to expire on May 15, 2023. A notable put contract at the $15.00 strike price has a current bid of $0.25, offering a potential discounted purchase price of $14.75 per share, compared to the current trading price of $19.63. This represents a 24% discount, with a 79% chance of the contract expiring worthless, yielding a 1.67% return or 5.58% annualized.
On the call side, a contract at the $22.50 strike price, with a bid of $0.75, would allow investors to sell shares at an 18.44% total return if exercised. The current odds of this contract expiring worthless are estimated at 51%. The implied volatility for the put contract is 99%, while the call contract sits at 84%, with actual trailing volatility calculated at 75%.
