Capital One Financial Corp (COF) has new options contracts available for the May 29th expiration. Investors can now consider a put contract at a $190.00 strike price with a current bid of $8.20, effectively lowering the purchase cost of shares to $181.80 if executed. This represents a 1% discount to the current stock price of $192.64, with a 57% probability of the put contract expiring worthless, potentially yielding a 4.32% return on the cash commitment.
Additionally, a call contract at a $195.00 strike price is available, with a bid of $8.30. For investors buying shares at $192.64 and selling this covered call, the total return could reach 5.53% if exercised by the expiration date, although there’s a 50% chance it may expire worthless. The implied volatility for the put is 41% and 39% for the call, while actual trailing volatility is measured at 32%.
