Investors in Capital One Financial Corp (NYSE: COF) have new options available with expiration on May 8. Notable contracts include a put option at a strike price of $180, which has a current bid of $7.00. Selling this put would commit the investor to purchase shares at $180, while collecting a premium that lowers the effective cost to $173. This represents a 2% discount compared to the recent trading price of $183.86. Analytical data indicates a 60% chance that the put could expire worthless, offering a potential annualized return of 33.01%.
On the call side, there’s a contract available at a $185 strike price, currently bidding at $8.90. Selling this call after purchasing shares at $183.86 could yield a total return of 5.46% if exercised, but carries a 48% chance of expiring worthless, allowing the investor to keep both the shares and the premium. The implied volatility for the put is 45%, and for the call, 44%, while actual trailing volatility stands at 38%.
