Investors in Devon Energy Corp. (DVN) can now trade new options contracts for an August 28 expiration. Notably, a put contract at a $42.00 strike price has a current bid of $0.20, allowing investors to effectively purchase shares for $41.80, compared to the current trading price of $42.38. This put option has a 56% chance of expiring worthless, offering a potential 0.48% return or 3.48% annualized if it does.
On the call side, a $43.00 strike price call contract is available with a bid of $0.38. If investors buy shares at $42.38 and write this covered call, they can realize a total return of 2.36% if the option is exercised. The likelihood of this call contract expiring worthless is currently estimated at 50%, which could offer a 0.90% additional return or 6.55% annualized.
The trailing twelve-month volatility for DVN is calculated at 34%, while the put and call options show implied volatilities of 39% and 42%, respectively.
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