Investors in FormFactor Inc (NASDAQ: FORM) can now trade new options with a January 2027 expiration date, offering potential opportunities due to the 273 days remaining until expiration. A notable put contract at a $130.00 strike price has a current bid of $30.30, allowing investors to effectively purchase shares at a cost basis of $99.70, a 3% discount from the current trading price of $134.06 per share. The odds of this put contract expiring worthless are estimated at 67%, which could yield a 23.31% return on cash commitment, or 31.16% annualized.
On the call side, a $140.00 strike priced contract is trading at a bid of $32.90, allowing investors who buy shares at the current price to sell as a “covered call.” This could provide a total return of 28.97% if executed by the expiration date. The possibility of the call expiring worthless stands at 38%, potentially boosting returns by 24.54%, or 32.81% annualized. Notably, implied volatility for the put is 81% and for the call is 77%, while actual trailing twelve-month volatility is calculated at 63%.
