Investors in Sterling Infrastructure Inc (Symbol: STRL) saw new options trading commence today for contracts expiring in March 2027. Notably, a put contract at the $880.00 strike price has a current bid of $240.00. If sold, this contract commits the investor to buy shares at $880.00, while allowing them to collect the premium, effectively lowering the cost basis to $640.00, compared to the current share price of $885.36. There is a 65% probability that this put contract could expire worthless.
On the call side, a contract at the $890.00 strike price is currently bidding at $244.80. If an investor sells this covered call after purchasing shares at $885.36, they could achieve a total return of 28.17% if the stock is called away at expiration. The odds of this call contract expiring worthless are currently estimated at 36%. Implied volatilities for both contracts stand at 87% and 89%, respectively.
For reference, the actual trailing twelve-month volatility for STRL is calculated at 77%.
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