Investors in Albemarle Corp. (ALB) were introduced to new options today, with contracts set to expire on June 12. Notably, a put contract at a $190.00 strike price has a current bid of $13.60, providing an effective purchase price of $176.40 for the shares, a 7.16% return on investment if it expires worthless, reflecting a 60% probability of that outcome. Meanwhile, a call contract at the $200.00 strike price is priced at $14.65, potentially offering a total return of 12.27% if exercised, although it carries a 49% chance of expiring worthless.
Albemarle’s shares currently trade at $191.19, with the $190.00 strike representing about a 1% discount, and the $200.00 strike indicating a 5% premium. Implied volatilities for these contracts stand at 71% and 69%, respectively, while the trailing twelve-month volatility is calculated at 61%.
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