Investors in Nu Holdings Ltd (NYSE: NU) saw new options trading begin today for the September 2027 expiration date. Notably, a put contract at a $15.00 strike price is currently bid at $1.00, allowing sellers to potentially purchase the stock at an effective cost of $14.00 per share. This represents a 1% discount to the current trading price of $15.22. The odds suggest a 65% chance that this contract may expire worthless, in which case it would yield a 6.67% return on the cash commitment.
On the call options side, a $17.00 strike price call contract has a current bid of $1.25. Selling this as a covered call while holding shares at the current price could result in a total return of 19.91%, should the stock be called away by the September 2027 expiration. This call represents a 12% premium over the current stock price with a 45% chance it may expire worthless. In such a scenario, the premium collected would add an 8.21% extra return.
The implied volatility for the put is at 43%, while the call stands at 42%. The trailing twelve-month volatility is calculated at 37%.
