Investors in DENTSPLY SIRONA Inc (XRAY) saw new options contracts available for expiration on October 16, 2023. The put contract at a $10.00 strike price is currently bid at 70 cents, offering a potential cost basis of $9.30 per share if sold-to-open. This represents a 20% discount from the current share price of $12.55. With a 75% likelihood of the put expiring worthless, this strategy yields a potential return of 7.00%, or 10.74% annualized.
On the call side, a $22.50 strike contract is bid at 15 cents. If purchased and sold as a covered call while holding shares at $12.55, the total return could reach 80.48% if exercised. The call’s expiration odds indicate an 81% chance of it also expiring worthless, potentially adding an extra 1.20% return, or 1.83% annualized, to the investor’s gains. The implied volatility for the put contract is 57%, while for the call, it is 66%.
