Investors in Humana Inc. (HUM) are seeing new options trading for the October 17th expiration, with key contracts providing potential opportunities for premium collection. The put contract at a $235.00 strike price has a current bid of $16.60, which would effectively reduce the cost basis to $218.40, assuming the contract is exercised.
This strike price represents a 3% discount to the current share price of $242.76, with a 61% chance of the put expiring worthless, potentially offering a 7.06% return on cash commitment or 23.65% annualized. On the call side, a contract at the $250.00 strike price is bid at $19.90, providing an 11.18% return if shares are called away, with a 48% chance of expiration at that strike price.
The implied volatility for the put contract is 47%, while the call contract’s implied volatility is 45%. The actual trailing twelve-month volatility is calculated at 44% based on the past 249 trading days.
