Suncor Energy Inc (Symbol: SU) saw new options available today for a November 20th expiration, with a focus on two key contracts. A put option at the $65.00 strike price currently has a bid of $1.50, allowing investors to potentially lower their share purchase cost to $63.50 if executed, representing a 5% discount from the current price of $68.72. Current odds indicate a 70% chance that this contract will expire worthless, offering a 2.31% return, or 11.86% annualized.
On the call side, a contract at the $70.00 strike price has a current bid of $3.70. If executed, this covered call would provide a total return of 7.25% from the current price, excluding dividends, if it gets called away by November 20th. There is a 50% chance that this call may also expire worthless, potentially yielding a 5.38% additional return, or 27.66% annualized.
Both contracts highlight opportunities for investors amid current market volatility, with implied volatilities at 31% for puts and 36% for calls, against an actual trailing twelve-month volatility of 27%.
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