Investors in Chewy Inc. (Symbol: CHWY) have new options available with a March 2027 expiration date, marking an opportunity for higher premiums due to the 326 days until expiration. A notable put contract at a $15.00 strike price currently has a bid of 55 cents, representing a 41% discount to Chewy’s current trading price of $25.39 per share. If exercised, the effective cost basis for shares would be $14.45, presenting an attractive buying alternative.
On the call side, a $27.50 strike call contract bids at $3.80, allowing investors who purchase shares at $25.39 to potentially gain a total return of 23.28% if the stock is called away by expiration. This strike price is approximately 8% above the current market value, with a 42% chance it will expire worthless, allowing investors to keep both their shares and the premium collected.
The implied volatility for the put contract is 86%, while the call’s implied volatility sits at 58%, with the actual trailing twelve-month volatility calculated at 45%.
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