Investors in Restaurant Brands International Inc (Symbol: QSR) can now access new options expiring on June 18, 2023. A notable put contract at the $72.50 strike price has a current bid of $2.05, allowing investors to acquire shares at an effective price of $70.45 after premium considerations, which provides a 1% discount to the current trading price of $72.88. The options data indicates a 54% probability that this put contract may expire worthless, potentially yielding a 2.83% return on the cash commitment, or 12.43% annualized.
On the call side, a contract at the $77.50 strike price is priced at $0.50. This strategy allows investors to commit to selling shares at $77.50, offering a possible 7.03% total return if the stock is called away by the expiration date. The likelihood of the call contract expiring worthless stands at 65%, which could translate to a 0.69% additional return, or 3.02% annualized.
Implied volatility for the put is 28%, while the call’s implied volatility is 29%. The actual trailing twelve-month volatility for Restaurant Brands International is calculated at 24%, reflecting a stable trading environment.
