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Investors in Lumentum Holdings Inc (LITE) gained access to new options today for a February 2026 expiration. Notably, a put contract at the $240.00 strike price has a current bid of $39.40, allowing sellers to secure a purchase price for shares at $240.00, effectively lowering the cost basis to $200.60. This represents an approximate 1% discount to LITE’s current trading price of $241.99.
Additionally, a call contract at the $250.00 strike price is priced at $40.10. If an investor sells this as a covered call while purchasing shares at $241.99, they could achieve a total return of 19.88% at expiration. The odds of the put contract expiring worthless are currently estimated at 59%, while the covered call contract has a 44% chance of expiring worthless.
The implied volatility for the put option is at 86%, and the call option is at 94%. LITE’s trailing twelve-month volatility is calculated at 72% based on the last 250 trading days.
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