Investors in Pan American Silver Corp (Symbol: PAAS) can now access newly available options contracts set for expiration on March 27th. Notable contracts include a put at a $51.00 strike price, currently bidding at $3.50, which could allow investors to effectively acquire shares at a cost basis of $47.50, representing a 12% discount from the current price of $53.77. The odds of this put contract expiring worthless are estimated at 64%.
On the call side, a $55.00 strike call contract, with a current bid of $4.30, offers a potential return of 10.28% if the stock is called away at expiration. This call strike reflects a 2% premium above the current trading price, with a 46% chance it may expire worthless while allowing investors to keep the premium collected. Implied volatilities for the put and call contracts are 75% and 78%, respectively, while actual trailing twelve-month volatility is calculated at 54%.
