Investors in CRH plc (Symbol: CRH) gained access to new options on July 31, with two notable contracts: a put option at an $87.00 strike price, currently bid at $1.05, and a call option at a $102.00 strike price, with a current bid of $4.10. The $87.00 put represents a 14% discount to CRH’s current trading price of $100.76, suggesting an 80% chance it could expire worthless. If it does expire, the premium would yield a 1.21% return on cash committed, or 8.81% annualized.
The $102.00 call option, by contrast, adds a potential return of 5.30% if exercised, given the current share price. It is only a 1% premium over the current stock price, with a 49% chance of expiring worthless. Should it expire, the collected premium could boost returns by 4.07%, equating to 29.70% annualized. The implied volatility for the put option is 53%, while for the call option it is 43%.
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