Antero Resources Corp (NYSE: AR) launched new options today for July 17th expiration, providing investors with potential opportunities to enhance their returns. Notably, a put contract at the $34.00 strike price offers a current bid of $0.80, translating to a cost basis of $33.20 for investors willing to purchase shares, which is a 12% discount from the current trading price of $38.69. Current odds suggest a 78% chance that this contract may expire worthless, allowing sellers to keep the premium, yielding a 2.35% return on the cash commitment or an annualized 10.74%.
On the call side, a covered call contract at the $43.00 strike price is available with a current bid of $1.40. Investors purchasing shares at $38.69 and selling this call could potentially achieve a total return of 14.76% if the stock is called away at expiration. The likelihood of the call expiring worthless stands at 65%, allowing investors to retain their shares and the collected premium, which could contribute an additional return of 3.62% or an annualized 16.51%.
Implied volatility for the put contract is 44%, while the call contract shows 43%. The trailing twelve-month volatility is calculated at 39%, reflecting the stock’s recent trading conditions.
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