Investors in FormFactor Inc (NASDAQ: FORM) gained access to new options today, with contracts expiring in January 2028. Notably, a put contract at the $140 strike has a current bid of $52, offering an alternative purchase price of $88 per share if it is sold to open. This represents a 3% discount from the current market price of $144.16, with a 75% chance of expiring worthless, yielding a potential 37.14% return on cash commitment.
On the call side, a $180 strike price call has a bid of $55.50. If shares are bought at $144.16 and the call is sold, the total return could reach 63.36% upon expiration in January 2028, excluding dividends. The strike price is approximately 25% higher than the current trading price, with a 33% probability of expiring worthless, potentially offering a 38.50% return boost if it does.
Current implied volatility for both contracts stands at 92%, compared to an actual trailing volatility of 70% based on the last 251 trading days.
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