Rivian Automotive Inc (RIVN) debuted new options contracts today, with notable put and call options set to expire in February 2026. A put contract at a $19.00 strike price, currently bid at 55 cents, offers investors a potential way to purchase shares effectively at $18.45 if sold to open. This represents a 10% discount compared to the current share price of $21.18, with a 69% chance of the contract expiring worthless, allowing for a premium return of 2.89%, or 24.01% annualized.
Additionally, a call contract at a $24.00 strike price is offered at a 56-cent bid. If investors buy shares at $21.18 and sell to open this call, they could achieve a total return of 15.96% if the stock is called away at expiration. There is a 62% likelihood that this covered call could expire worthless, translating to an additional return of 2.64%, or 21.93% annualized.
The implied volatility for the put is 98%, while the call stands at 79%, with the actual trailing twelve-month volatility calculated at 62%.
