Investors in Tenaris SA (symbol: TS) can explore new options that began trading today with a November 20th expiration date. The notable put contract at a $57.50 strike price currently has a bid of $3.00, allowing investors to effectively acquire shares at a cost basis of $54.50, assuming they sell-to-open the contract. This price represents a 3% discount to TS’s current trading price of $59.16, and the likelihood of the put expiring worthless is estimated at 60%.
On the calls side, there is a $60.00 strike price call contract with a bid of $3.50. Selling this covered call while holding shares purchased at the current price can yield a total return of 7.34% by expiration, with a 48% chance of the contract expiring worthless, allowing investors to retain both the shares and the premium. The implied volatility for the put is 34%, while the call is at 33%, against a trailing twelve-month volatility of 27%.
