Atour Lifestyle Holdings Ltd (Symbol: ATAT) has introduced new options, particularly a put contract with a $35.00 strike price, expiring on September 19th. The current bid for this contract is 60 cents, allowing investors to commit to purchasing shares at $35.00, effectively lowering their cost basis to $34.40, compared to the current trading price of $36.32.
The $35.00 strike represents an approximate 4% discount to ATAT’s current trading price. There is a 59% chance that this put contract could expire worthless. Should it expire worthless, the premium would result in a 1.71% return on the cash commitment, which translates to an annualized return of 9.78%. The implied volatility of this put contract is 53%, while the actual trailing twelve-month volatility is calculated at 46%.
