Investors in Six Flags Entertainment Corporation (Del) (NYSE: FUN) saw new options begin trading today, for the November 21st expiration. The key insights reveal that the current price for the stock is $29.55, and a significant call option at a $30.00 strike price has a bid of $1.90, indicating a total return potential of 7.95% if exercised at expiration, excluding dividends and commissions.
The $30.00 strike price is approximately 2% above the current stock price and carries a 42% chance of expiring worthless, according to analytical data. If it does expire worthless, the premium collected would yield an additional 6.43% return or an annualized rate of 20.58%. The implied volatility for this call contract is 56%, while the actual trailing twelve-month volatility is calculated at 47%.
