Investors in Fabrinet (NYSE: FN) can now explore new options expiring on June 18, 2023, with 69 days until expiration. A put option at a $630 strike price currently has a bid of $86, allowing sellers to potentially achieve a cost basis of $544 per share, which presents about a 1% discount compared to the current trading price of $634.11. Current odds indicate a 57% chance that this contract could expire worthless, representing a potential 13.65% return on cash commitment, or 72.21% annualized.
On the call side, a $640 strike price call option is bidding at $83.10. Selling this as a covered call would commit an investor to sell their shares at this price, resulting in a potential total return of 14.03% if executed by the expiration date. The odds of this call expiring worthless are currently estimated at 45%, which could yield a 13.10% return on investment, or 69.32% annualized.
Implied volatility for the put contract stands at 81%, while the call option is at 83%. The trailing twelve-month volatility is calculated at 62%.
