Engaging VTR Options Strategies for October 16th

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Investors in Ventas Inc (NYSE: VTR) saw new options trading commence on October 16, 2023. A notable put contract at the $90.00 strike price currently has a bid of $1.90, which implies an effective purchase price of $88.10 if exercised. This represents a 1% discount compared to the current trading price of $90.57 per share, with a 56% chance that it may expire worthless.

Additionally, a call contract at the $92.50 strike price is available with a bid of $1.10. Selling this call as a covered call at the current share price could yield a total return of approximately 3.35% if exercised at expiration, also with a 56% probability of expiring worthless, in which case the investor retains both the shares and premium.

The implied volatility for the put is 27% while the call sits at 23%, offering different risk-reward dynamics for investors. The actual trailing twelve-month volatility stands at 22%.

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