Investors in Capital One Financial Corp (COF) gained access to new options today, specifically contracts expiring in September 2027. Notably, the put contract at a $200 strike price currently has a bid of $15.10, implying an attractive cost basis of $184.90 if executed. This represents a 10% discount from COF’s current trading price of $223.37. The likelihood of this option expiring worthless is estimated at 72%.
On the call side, a $240 strike price has a bid of $24.00. For investors buying shares at $223.37 and selling this covered call, the potential total return could be 18.19% if the stock is called away by expiration. The chances of this contract expiring worthless stands at around 49%. Implied volatility for both contracts is approximately 33%, with actual trailing volatility at 32%.
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