Investors in Cogent Communications Holdings, Inc. (CCOI) can now access new options expiring in December 2026. A put contract at a $35.00 strike price has a current bid of $5.50, allowing sellers to achieve a cost basis of $29.50 per share, approximately 22.5% below the current trading price of $37.72, given a 65% chance of the contract expiring worthless.
Additionally, a call contract at a $40.00 strike price also bids at $5.50. Investors buying shares at $37.72 and employing this covered call are looking at a potential total return of 20.63% if shares are called away at expiration, despite a 42% chance of the contract expiring worthless.
Key data points include an implied volatility of 57% for the put and 59% for the call, compared to a trailing twelve-month volatility of 45% based on the last 249 trading days.
