Investors in Fortive Corp (FTV) have new options available for expiration on November 20, 2023. The notable put contract at a $60.00 strike price has a current bid of $3.20, offering a potential purchase price of $56.80 after accounting for the premium. This represents about a 2% discount to the current trading price of $60.98 per share, with a 60% chance that the put contract could expire worthless, providing a return of 5.33% on the cash commitment—equating to 9.73% annualized.
On the call side, a $65.00 strike call contract is currently bidding at $2.50. If shares are purchased at $60.98 and the call is sold, the total return could reach 10.69% if the option is exercised at expiration. This call is approximately 7% out-of-the-money, with a 54% likelihood of expiring worthless, resulting in an additional return of 4.10% or 7.48% annualized on the premium collected. Current implied volatilities for the put and call contracts are 33% and 29%, respectively.
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