Investors in Caesars Entertainment Inc (CZR) have new options available, expiring in March 2027. A notable put contract with a $20.00 strike price is currently bid at $3.05, allowing potential buyers to effectively acquire shares at $16.95, a 13% discount to the current trading price of $22.95. The probability of this put contract expiring worthless is estimated at 73%, potentially yielding a 15.25% return on cash commitment, or 13.35% annualized.
On the calls side, a contract with a $25.00 strike price has a bid of $2.80. Investors purchasing shares at $22.95 and selling this covered call could see a total return of 21.13% if the contract is exercised. However, there’s a 42% chance this call could expire worthless, allowing investors to retain their shares and benefit from a 12.20% yield boost or 10.68% annualized return.
The implied volatility for the put is at 66%, while for the call, it is 55%. The actual trailing twelve-month volatility is calculated at 52%.
