Investors in Humana Inc. (HUM) began trading new options for April 2027 today, with a put contract at a $190.00 strike price currently bid at $32.00. This put contract allows investors to commit to purchasing shares at $190.00, effectively resulting in a cost basis of $158.00 after the premium. The current trading price of HUM is $191.74, indicating an approximate 1% discount on the strike. Analytical data suggest a 63% probability that the put contract may expire worthless, which would yield a 16.84% return on cash commitment.
On the call side, a contract at the $205.00 strike price is currently bid at $33.00. If purchased at the current price of $191.74 and sold as a covered call, it could yield a total return of 24.13% if the stock is called away at expiration, which carries a 44% chance of expiring worthless. The implied volatility for the put contract is 51%, while the call contract has an implied volatility of 54%. The actual trailing twelve-month volatility is calculated at 50%.
