Investors in Cintas Corporation (CTAS) saw new options trading begin for contracts expiring on October 17th. A notable put contract at the $220.00 strike price has a current bid of $5.50, allowing investors to potentially buy shares at an effective cost basis of $214.50, representing about a 2% discount from the current trading price of $224.44 per share.
The odds of the $220.00 put contract expiring worthless are estimated at 61%, potentially yielding a 2.50% return on the cash commitment or an annualized 14.26%. Conversely, on the call side, a $240.00 strike call has a bid of $2.80, providing an 8.18% return if exercised, contingent on the stock being called away. This strike represents a 7% premium to the current stock price, with a 69% chance of the contract expiring worthless, allowing investors to keep their shares and premiums.
The implied volatility for the put is 30% while the call’s is 25%. The actual trailing twelve-month volatility for CTAS is calculated at 25%.
