“`html
Goodyear Tire & Rubber Co. (GT) began trading new options contracts today, with the key put contract at an $8.00 strike price. Investors selling this contract would commit to buy shares at $8.00, effectively reducing their cost basis to $7.90 due to a current bid premium of 10 cents. This reflects a 7% discount to the current trading price of $8.60.
There is a 66% chance that the put contract will expire worthless, providing a potential return of 1.25% on cash commitment, or 7.12% annualized. The implied volatility for this put contract is reported at 117%, while the actual trailing twelve-month volatility stands at 55% based on the last 250 trading days.
“`
