Investors in Virtu Financial Inc Class A (Symbol: VIRT) can now trade new options contracts expiring in December 2027. Notably, a put contract at a $60.00 strike price currently has a bid of $5.60, allowing potential buyers to lower their effective purchase cost to $54.40 per share, compared to the current stock price of $64.59. This represents a 7% discount to the current trading price, with a 68% chance of the contract expiring worthless, potentially offering a 9.33% return on the cash commitment, or 7.05% annualized.
Conversely, the call contract at a $70.00 strike price has a bid of $7.30. If shares are purchased at $64.59 and the call is sold, it could yield a total return of 19.68% by the December 2027 expiration, assuming the stock is called away. This option has a 47% probability of expiring worthless, allowing investors to retain their shares and pocket the premium, translating to an 11.30% added return, or 8.54% annualized. The implied volatility for the put is 38% and for the call is 36%, while the trailing twelve-month volatility is calculated at 34%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
