Investors in Solaris Energy Infrastructure Inc (Symbol: SEI) can now access new options contracts expiring on July 17th, 2023. Notably, a put contract at a $55.00 strike price has a current bid of $9.00, allowing for a cost basis of $46.00 if executed. This represents a potential return of 16.36%, or 55.30% annualized, should the contract expire worthless, with current odds of that happening at 61%.
Additionally, a call contract at the $57.50 strike price has a bid of $8.90, providing a potential total return of 19.64% if the stock is called away at expiration. Should it expire worthless, the investor retains both the shares and the premium, yielding an extra 16.04% return, or 54.20% annualized, with a 43% probability of this outcome. The implied volatility for both contracts is approximately 92%, while actual trailing volatility is calculated at 82%.
