Investors in Samsara Inc (IOT) can now trade new options expiring on December 18, 2023, with significant premiums potentially available due to the 270 days until expiration. Notably, a put contract at the $31.00 strike price has a current bid of $3.60, allowing investors to purchase shares at a discounted effective cost of $27.40 if sold-to-open, versus the current trading price of $33.67. This put represents about an 8% discount from the share price, with a 68% chance it may expire worthless, potentially yielding an 11.61% return on the cash commitment or 15.70% annualized.
On the calls side, a $37.00 strike call contract is currently priced at $5.20. If an investor buys shares at the current price and sells the call, they could achieve a total return of 25.33% if the stock is called away at expiration, which is about 10% above the current price. The odds of this call expiring worthless are 43%, allowing investors to retain both shares and premium collected, providing an additional 15.44% return or 20.87% annualized.
The implied volatility for the put is 66% and for the call, 68%, while the actual trailing twelve-month volatility is calculated at 55%.
