Altria Group Inc (Symbol: MO) has introduced new options contracts expiring in March 2027, providing investors with opportunities in both put and call options. Notably, the $55.00 strike put contract has a current bid of $2.60, representing a 15% discount from the current trading price of $64.69 per share, with a 76% probability of expiring worthless. If exercised, the effective purchase price for shares would be $52.40, offering a potential return of 4.73% on the cash commitment.
On the call side, the $75.00 strike contract, priced at $1.87, offers an 18.83% return if shares are called away by expiration. This strike is approximately 16% above the current price. The chance of this contract expiring worthless stands at 75%, which, if it occurs, would yield an additional 2.89% return for investors who retain their shares.
The implied volatility for the put option is 27% while that of the call option is 24%. The actual trailing twelve-month volatility calculated for Altria is currently at 22%.
