Investors in Lumentum Holdings Inc (LITE) began trading new options today for a June 2028 expiration, with particular interest in both put and call contracts. The put contract at a $680.00 strike price has a current bid of $302.00, offering a potential cost basis of $378.00 per share if executed. This represents a 1% discount to LITE’s current trading price of $684.58, with a 77% chance that the put could expire worthless. If it does, this could yield a 44.41% return based on the cash commitment, equivalent to 19.41% annualized.
Additionally, a call contract at a $740.00 strike price is available with a bid of $316.00. Investors can realize a 54.26% total return if the stock is called away at expiration, alongside a chance (26%) that it may also expire worthless. The implied volatility for the put contract is 92%, while the call’s implied volatility is 88%, with overall trailing volatility calculated at 80%.
