Investors in CRH plc (Symbol: CRH) saw new options trading begin today for the August 21st expiration, including a notable put contract at the $110.00 strike price with a bid of $3.70. This contract allows investors to purchase shares at $110, effectively reducing the cost basis to $106.30, compared to the current trading price of $112.25. The odds of this put contract expiring worthless are estimated at 60%, potentially offering a 3.36% return on the cash commitment, or an annualized 19.18%.
On the call side, a contract at the $115.00 strike price has a bid of $4.50. If an investor buys shares at the current price and sells this covered call, they commit to selling at $115. This strategy could yield a total return of 6.46% if executed at expiration, with a 52% chance of the contract expiring worthless, which would mean retaining both shares and premium collected. The implied volatilities for the put and call contracts are 35% and 38%, respectively, compared to an actual trailing twelve-month volatility of 32%.
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