Investors in Ford Motor Co. (NYSE: F) can now participate in new options trading for contracts expiring on August 21st, following the introduction of new put and call options. The put contract at a $17.00 strike price has a current bid of $1.18, offering a potential cost basis of $15.82 per share if sold-to-open. This represents a roughly 3% discount to Ford’s current trading price of $17.48, with a 60% chance of expiration without value.
On the call side, a $20.00 strike price contract is being bid at $0.85. Should an investor purchase shares at $17.48 and sell this covered call, they could see a total return of 19.28% if the stock is called away by expiration. This strike price presents a 14% premium over the current trading price, with a 65% chance of the call expiring worthless, allowing the investor to retain both shares and premium.
Current volatility is noted at 50% for puts and 53% for calls, while the actual trailing volatility over the last year is calculated at 36%.
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