Investors in Photronics, Inc. (NASDAQ: PLAB) are seeing new options trading for the April 17th expiration, featuring a put contract at a $25.00 strike price currently bid at $0.25. This represents a 34% discount from the current share price of $37.98, with a 92% chance that it will expire worthless. If sold, this option could yield a 1.00% return on the cash commitment or an annualized return of 6.52%.
On the call side, a $40.00 strike option is currently bid at $2.65. If an investor purchases shares at $37.98 and sells this covered call, they could realize a 12.30% total return if the stock is called away at expiration. The odds of this option expiring worthless stand at 54%, allowing the investor to keep both the shares and the premium, boosting returns by an additional 6.98% or 45.51% annualized. The options reflect volatility rates of 82% for the put and 69% for the call.
