Investors in Albemarle Corp. (Symbol: ALB) saw new options trading commence today for the May 22 expiration. A $175.00 put contract has a current bid of $13.25, with the potential cost basis for shares at $161.75 if sold to open. This represents a roughly 2% discount from the current share price of $179.41, with a 61% chance of the put expiring worthless, which could offer a 7.57% return on cash commitment, or 55.27% annualized.
On the call side, a $185.00 strike price is attracting attention, with a current bid of $15.65. If an investor buys shares at the current price level and sells the call, they could achieve an 11.84% total return if the stock is called away. This strike is approximately 3% higher than the current share price, carrying a 47% probability of expiring worthless, which could yield an 8.72% return, or 63.68% annualized.
Implied volatility for both contracts stands at around 69%, with actual trailing twelve-month volatility calculated at 64%.
