Investors in Knight-Swift Transportation Holdings Inc (KNX) gained access to new options for expiration on September 18. A notable put contract at a $75.00 strike price currently has a bid of $2.90, allowing potential share acquisition at an effective cost basis of $72.10, marking a 2% discount from the current share price of $76.19. The probability of this contract expiring worthless stands at 58%, offering a potential 3.87% return on cash commitment or 22.05% annualized if it does.
On the calls side, a contract at the $77.50 strike has a current bid of $3.60. If shares are purchased at $76.19 and the call contract is sold, investors could see a total return of 6.44% if the stock is called away at expiration. The odds of this covered call expiring worthless is 49%, which would result in keeping both shares and the premium, equating to a 4.73% return boost or 26.95% annualized. Implied volatilities for these contracts are 41% and 44% respectively.
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