Investors in DuPont (NYSE: DD) saw new options trading begin today with contracts expiring on August 21, 2023. The newly available put contract at a $47.50 strike price has a current bid of $0.45, providing an opportunity for investors willing to commit to purchasing shares at that price, effectively lowering their cost basis to $47.05 from the current share price of $49.73.
On the call side, a contract at the $52.50 strike price has a bid of $0.70, offering a potential total return of 6.98% if the stock is called away at expiration. This strike is approximately 6% above the current trading price, with a 58% chance of expiry without being exercised. The implied volatility for the put and call contracts is 35% and 36%, respectively, while the trailing twelve-month volatility for DuPont stands at 30%.
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