Investors in General Dynamics Corp (GD) saw new options trading commence today for June 2027 expirations. Notably, the put contract at a $340 strike price has a bid of $26.50, translating to a potential cost basis of $313.50 per share for investors looking to purchase GD at a discount to the current price of $345.17. The likelihood of this contract expiring worthless is estimated at 61%, which would yield a return of 7.79% on the cash commitment, equating to an annualized rate of 7.65%.
On the call side, a $360 strike price has a bid of $30.00, presenting a total return of 12.99% if GD shares are called away at expiration. The current odds of this contract expiring worthless stand at 49%, potentially offering an 8.69% additional return if it does not get called. Both options illustrate the current implied volatility of approximately 26%, while trailing twelve-month volatility is calculated at 21%.
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