Investors in Steven Madden Ltd. (Ticker: SHOO) can now explore new options ahead of the April 17th expiration. Notably, a put contract at the $35.00 strike price is available with a current bid of 25 cents, offering a potential cost basis of $34.75 per share—a 13% discount from the current share price of $40.15. Analysts estimate a 72% chance that this put contract may expire worthless, yielding a return of 0.71% on cash commitment or an annualized 4.66%.
On the call side, an $45.00 strike call option is also available with a bid of 25 cents. Selling this contract after purchasing shares at $40.15 could lead to a total return of 12.70% if the stock is called away by the expiration date. There’s a 66% likelihood that this covered call might expire worthless, allowing investors to retain both shares and the premium collected, which translates to a 0.62% boost or 4.06% annualized return.
Implied volatility for the put and call contracts stands at 63% and 65%, respectively, while the actual trailing twelve-month volatility of SHOO is calculated to be 56%.
