HF Sinclair Corp (DINO) unveiled new options today with an expiration date of July 17th. Notably, a put contract at a $67.50 strike price has a current bid of $3.10, allowing investors to purchase the stock at this price while effectively lowering their cost basis to $64.40, compared to the current trading price of $68.89 per share.
Additionally, a call contract at the $70.00 strike price, also bidding at $3.10, enables investors to sell their shares at this price as a “covered call.” This potential transaction could yield a total return of 6.11% if exercised at expiration, while there’s a 50% chance the contract may expire worthless, allowing investors to retain both their shares and the premium collected.
The implied volatility for both contracts is around 44%, with HF Sinclair’s trailing twelve-month stock volatility calculated at 36%.
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