Investors in CVB Financial Corp (CVBF) can now explore new options expiring on April 17th, 2024. A notable call contract at the $20.00 strike price has a current bid of 35 cents. If an investor buys shares at $19.51 and sells this call as a covered call, they could realize a total return of 4.31% if the stock is called away at expiration, excluding dividends and broker commissions.
The $20.00 strike price represents a 3% premium over the current stock price. There’s a 48% chance that this call contract may expire worthless, allowing the investor to retain the shares and collect the premium, translating to an additional 1.79% return, or an annualized 14.90%. The implied volatility for this call contract is 74%, while the trailing twelve-month volatility is calculated at 28%.
