Investors in CRH plc (Symbol: CRH) can begin trading new options today, expiring on May 8. A notable put contract at a $105.00 strike price has a current bid of $3.20, allowing investors to commit to purchasing the stock at that price while potentially reducing their cost basis to $101.80. This represents an approximate 1% discount to the current trading price of $105.95, with a 56% chance that the put contract may expire worthless.
On the call side, a contract with a $107.00 strike price offers a current bid of $3.50. If an investor sells this covered call after purchasing the stock, they could see a total return of 4.29% if the stock is called away by the May 8 expiration. There is a 49% chance this call could also expire worthless, allowing investors to retain both their shares and the premium collected. The implied volatility for both contracts is around 40%.
