Investors in Pan American Silver Corp (Symbol: PAAS) saw the introduction of new options today for a March 2027 expiration date. Notably, a put contract at the $55.00 strike price currently bids at $7.40, offering potential buyers an effective cost basis of $47.60 per share—approximately a 6% discount from the current trading price of $58.34. The odds of this contract expiring worthless stand at 67%, potentially yielding a 13.45% return, or 14.75% annualized, if held to expiration.
In addition, a call contract at the $60.00 strike price has a current bid of $10.20. This option offers a 20.33% return if the stock is called away at expiration, though there’s a 40% chance of it expiring worthless, allowing the investor to retain both shares and the premium. Implied volatilities for the put and call contracts are 56% and 57%, respectively, while the trailing twelve-month volatility is calculated at 55%.
