Investors in Conagra Brands Inc (CAG) gained access to new options today with a May 1st expiration. Notably, a put contract at a $16.50 strike price has a current bid of $1.79, which allows an investor to potentially buy shares at an effective cost basis of $14.71, compared to the current share price of $16.73. This contract carries a 58% chance of expiring worthless.
On the call side, a contract with a $19.00 strike price is available at a bid of $1.45, offering a potential total return of 22.24% if shares are called away. The $19.00 strike represents a 14% premium to the current trading price, with a 62% chance of also expiring worthless. Implied volatilities for the put and call contracts are 83% and 106%, respectively, while actual trailing volatility stands at 27%.
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