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Barrick Mining Corp (Symbol: B) has launched new options trading with an expiration date of August 21, 2023. Investors can engage in options trading for a put contract with a $40.00 strike price, currently bid at $3.20, effectively reducing the cost basis to $36.80 per share, compared to the current trading price of $40.34. This put contract has a 57% chance of expiring worthless, presenting an 8.00% return on the cash commitment, or 32.09% annualized.
On the call side, a $42.00 strike price call contract is bid at $2.88. Should shares be purchased at $40.34 and the call sold, investors may achieve an 11.25% total return if the stock is called away at expiration. This call option carries a 51% probability of expiring worthless. If it does, investors hold their shares while benefiting from an additional 7.14% return, or 28.64% annualized.
The implied volatility for the put contract is 45%, while the call’s is 49%. The actual trailing twelve-month volatility is calculated at 44%.
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