Investors in Monster Beverage Corp (NASDAQ: MNST) can now trade new options contracts with an expiration date of April 17, 2024. A notable put contract is available at the $82.50 strike price, currently bid at $2.80, offering a cost basis of $79.70 for buyers, which reflects a 1% discount from the current share price of $83.48. The odds of this put expiring worthless stand at 56%, potentially yielding a 3.39% return or 22.14% annualized.
On the calls side, a contract at the $85.00 strike is bid at $2.75. If investors buy shares at $83.48 and sell this covered call, they could achieve a total return of 5.11% if the call is exercised, with a 54% chance that it expires worthless. Should it expire without being exercised, the premium would equate to a 3.29% additional return or 21.49% annualized. The implied volatility for the put contract is measured at 33%, while the call contract is at 30%.
