Deckers Outdoor Corp. (NYSE: DECK) has introduced new options for July 2nd expiration, which include a notable $95.00 put contract with a current bid of $5.00. Investors selling this contract would effectively lower their cost basis to $90.00 per share, compared to the current trading price of $98.50. This put option carries a 61% chance of expiring worthless, offering a potential return of 5.26% on the cash commitment, or 45.74% annualized.
Additionally, a $99.00 call contract is available, currently bid at $5.40. If executed as a covered call, it would provide a total return of 5.99% if the stock is called away, with the strike price being just 1% above the current price. The likelihood of this call expiring worthless stands at 47%, which would allow investors to retain both their shares and the premium collected, resulting in a 5.48% extra yield, or 47.64% annualized.
Implied volatility for the put option is 62%, while the call option’s implied volatility is at 55%. The actual trailing twelve-month volatility for DECK is calculated at 50%.
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