Investors in Agree Realty Corp. (ADC) witnessed the debut of new options trading on April 2027 contracts today. The $70.00 put contract is currently bidding at 75 cents, allowing investors to purchase shares at a reduced effective price of $69.25, representing a 6% discount compared to today’s trading price of $74.37. The likelihood of the put contract expiring worthless is approximately 68%, potentially yielding a 1.07% return on the cash commitment, or 1.64% annualized.
Additionally, a call contract at the $75.00 strike price is available, with a current bid of $2.20. Should an investor sell this covered call, they could see a total return of 3.81% at expiration, given that they sell shares at that price. The probability of this call expiring worthless is estimated at 50%, which would allow the retention of both the shares and premium, yielding a 2.96% boost or 4.52% annualized.
The implied volatility for both options stands at approximately 20%, while the actual trailing twelve-month volatility of ADC is calculated at 16% based on recent trading data.
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