Investors in Barclays PLC (NYSE: BCS) gained access to new options expiring on July 17, 2023, with 95 days until expiration. A notable put contract at a $22.00 strike price has a current bid of $1.10, offering a potential cost basis of $20.90 for shares, reflecting a 6% discount to the current trading price of $23.41. Analysts estimate a 65% chance that this put contract may expire worthless, providing a potential return of 5.00% on cash commitment or an annualized return of 19.21%.
On the call side, a $25.00 strike price has a current bid of $1.00. If an investor buys shares at $23.41 and sells this call as a covered call, they could realize an 11.06% total return at expiration, assuming the stock is called away. The call contract has a 52% probability of expiring worthless, which would result in a 4.27% additional return or an annualized 16.41%.
Implied volatility for the put contract is 64%, while for the call, it is 57%. The trailing twelve-month volatility for Barclays is calculated at 27%.
