Investors in Century Aluminum Co. (CENX) can now trade new options expiring on December 18, 2023, with a significant time until expiration of 254 days. Among the notable contracts, a put option at a $60.00 strike has a current bid of $11.40, allowing sellers to potentially lower their purchase cost basis to $48.60 if exercised. This put strike is approximately 6% lower than the current stock price of $64.14, with a 68% chance of expiring worthless. Should it expire worthless, this option would yield a 19% return on investment, or 27.3% on an annualized basis.
On the call side, a $65.00 strike call option has a bid of $15.10. If investors buy shares at $64.14 and sell the call, they commit to selling at $65.00, potentially earning a total return of 24.88% if the call is exercised. This call option is about 1% above the current trading price, with a 37% likelihood of expiring worthless, offering a potential annualized return of 33.82% on the premium collected. Implied volatilities are 79% for the put and 76% for the call, showing significant market expectations for price movement.
