Investors in Capital One Financial Corp (COF) can now explore new options for expiration on July 24, 2023. A notable put contract at a $180 strike price is currently bid at $5.90, allowing investors to potentially secure shares at a cost basis of $174.10 if they sell-to-open the contract. This represents an approximate 2% discount from the current trading price of $184.40, with a 61% chance of the contract expiring worthless.
On the call options side, a contract at a $190 strike price is bid at $6.80. If an investor purchases COF shares at $184.40 and sells this covered call, they would commit to selling the shares at $190, yielding a total return of 6.72% if exercised. The current odds of this call contract expiring worthless stand at 54%. Both contracts feature an implied volatility of about 39%, while the trailing twelve-month volatility is estimated at 31%.
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