Investors in AT&T Inc (Ticker: T) saw new options begin trading on October 10, 2023, for the April 2028 expiration. Notably, a put contract at the $20.00 strike price has a current bid of $1.53, allowing investors to set a potential cost basis of $18.47 per share if exercised. This represents a 4% discount to AT&T’s current trading price of $20.75.
Additionally, a call contract at the $22.00 strike price is priced at $2.02. If shares are purchased at $20.75 and the call is exercised, it could yield a total return of 15.76% at expiration. Current data suggests there is a 63% chance the put contract will expire worthless, while there is a 55% chance for the call contract.
Key metrics include a trailing twelve-month volatility of 23% and implied volatility for both contracts at approximately 30%.
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