Merit Medical Systems, Inc. (MMSI) has new options trading starting this week, with contracts expiring on August 15th. The $90.00 put option currently has a bid of $2.95, offering a potential cost basis of $87.05 if exercised, compared to the current share price of $92.30, representing a 2% discount. The chances of this put contract expiring worthless are estimated at 61%, potentially yielding a 3.28% return on the cash commitment.
On the call side, the $95.00 call option has a bid of $3.00. If exercised, the investor who buys MMSI shares at $92.30 could see a total return of 6.18% if the stock is called away by August 15th. The likelihood of this call expiring worthless is estimated at 55%, allowing the investor to retain both shares and the premium, which could provide a 3.25% boost to returns.
The implied volatility for the put contract is 34% and for the call contract is 36%, while the trailing twelve-month actual volatility is calculated at 26% based on the last 249 trading days.
