Investors in International Flavors & Fragrances Inc. (Symbol: IFF) began trading new options for February 2026, with notable contracts including a put at a $72.50 strike price currently valued at $3.70 and a call at $77.50 valued at $4.60. This trading commenced on [insert date], representing a potential strategy for options sellers to gain higher premiums.
The put contract suggests a purchase commitment at $72.50, with the potential for a cost basis of $68.80 after collecting the premium. This price reflects an approximate 3% discount to the current stock price of $74.92. The likelihood of the put contract expiring worthless is estimated at 62%. Meanwhile, the call contract offers a potential 9.58% return if the stock price rises above $77.50 by expiration, with a 48% chance of expiring worthless, allowing the investor to retain both shares and premium.
The implied volatility for the put contract is 31% and for the call contract, 30%, against a trailing twelve-month volatility calculated at 28% based on the last 250 trading days.
