Investors in Humana Inc. (NYSE: HUM) saw new options available for trading today, with contracts expiring on March 13. Key highlights include a put option at a $190.00 strike price, currently bidding at $8.00, which could provide an effective cost basis of $182.00 if exercised, representing a 3% discount to the current trading price of $194.90 per share. The estimated probability of this put option expiring worthless is 60%, offering a potential annualized return of 35.78% if it does.
On the call side, a contract at the $200.00 strike price is trading at $9.70. Selling this covered call would yield a total return of 7.59% if executed at expiration, while the odds of this call expiring worthless stand at 51%. The actual trailing twelve-month volatility of HUM is calculated to be 50%, with implied volatilities for the put and call contracts at 55% and 57%, respectively.
