Barrick Mining Corp (Symbol: B) has begun trading new options for April 10th, 2023. Key highlights include a put contract at a $45.00 strike price with a current bid of $0.98. Selling this put would effectively allow an investor to purchase shares at a net cost of $44.02, indicating an 8% discount from the current stock price of $49.05. The probability of the put expiring worthless is estimated at 70%, offering a potential premium return of 2.18%, or 18.50% annualized.
Additionally, a call contract at the $50.00 strike price has a bid of $1.86. If an investor buys shares at $49.05 and sells this call as a covered call, they would commit to selling at $50.00 while collecting the premium. This could yield a total return of 5.73% if the call is exercised by expiration. The chances of this call expiring worthless are estimated at 50%, which would still permit the investor to keep the shares and the premium, representing a potential extra return of 3.79%, or an annualized 32.22%.
The implied volatility for the put contract is 64%, while for the call contract it is at 50%. Actual trailing twelve-month volatility is calculated at 42%.
