Investors in Celestica Inc (CLS) witnessed the debut of new options trading on February 27. The notable contracts include a put option at a $285.00 strike price, currently bidding at $30.00, which offers an effective cost basis of $255.00 for purchasing shares. This represents a 1% discount off the current stock price of $287.78 and carries a 59% probability of expiring worthless, suggesting a potential 10.53% return on cash commitment, or 76.84% annualized.
On the calls side, a $295.00 strike price call option is bidding at $32.50, which investors can use as a covered call while purchasing shares at $287.78. Should the shares get called away by expiration, this could yield a total return of 13.80%, depending on market performance. The odds of this contract expiring worthless are currently estimated at 45%, which could provide an 11.29% additional return, or 82.44% annualized.
The implied volatility for the put contract is 82%, while the call option stands at 85%. The current trading price for CLS is $287.78.
