Cenovus Energy Inc (CVE) options trading began for July 17th expiration on October 2, 2023. The newly listed put contracts at a $26.00 strike price currently bid at 45 cents could allow investors to purchase shares effectively at $25.55, providing a 1% discount to the current share price of $26.20. The likelihood of the put contract expiring worthless is approximately 56%, potentially yielding a 7.52% annualized return for investors.
Additionally, call options at the $28.00 strike price are available with a current bid of 10 cents. Selling a covered call at this price while holding shares could yield a 7.25% return if exercised. The $28.00 strike represents about a 7% premium to the current trading price, with similar 56% odds of expiration without exercise. Implied volatility stands at 47% for the put and 49% for the call, while the trailing twelve-month volatility is calculated at 34%.
