Investors in Knight-Swift Transportation Holdings Inc (NYSE: KNX) have begun trading new options for February 2027, with a focus on increasing potential returns. The put option at a $72.50 strike price currently has a bid of $6.40, allowing investors to effectively lower their cost basis to $66.10, a 3% discount from the current share price of $74.97. Current analysis indicates a 63% chance that this put will expire worthless, potentially offering an 8.83% return on cash commitment or an annualized 13.10%.
Additionally, the call option at an $80.00 strike price has a bid of $6.90. If shares are bought at $74.97 and the call is sold, the total return could reach 15.91% if exercised. The probability of this call contract expiring worthless is estimated at 49%, giving an annualized YieldBoost of 13.65% should it expire without being exercised. Current implied volatility stands at 43% for puts and 42% for calls, compared to trailing twelve-month volatility of 39%.
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