Investors in Capital One Financial Corp (COF) have new options trading available for expiration on June 5th. A put contract at the $195.00 strike price has a bid of $5.60, allowing investors to purchase the stock at an effective cost of $189.40, which is approximately a 2% discount from the current trading price of $198.74. The chance of the put contract expiring worthless is estimated at 59%, potentially offering a 2.87% return on cash commitment or 24.38% annualized.
On the calls side, a contract at the $200.00 strike price has a current bid of $6.40. Investors purchasing shares at $198.74 and selling this call could achieve a total return of 3.85% if exercised, with a 50% chance it will expire worthless, allowing them to retain both the shares and premium collected. The implied volatilities for the put and call options are 35% and 33%, respectively, while the trailing twelve-month volatility is calculated at 32%.
