Investors in Cameco Corp. (Symbol: CCJ) can now trade new options set to expire on July 17, 2023. The options chain includes a put contract at a $120.00 strike price, currently bidding at $9.95, which represents a potential cost basis of $110.05 for shares if exercised. This put option is approximately 3% below the current trading price of $124.33, with a 61% chance of expiring worthless, offering an 8.29% yield on cash commitment, or 36.03% annualized.
Additionally, there is a call contract at the $130.00 strike price with a current bid of $10.50. If investors buy shares at $124.33 and sell this call, they would lock in a total return of 13.01% upon expiration, not accounting for dividends. This call option represents about a 5% premium over the current price and has a 50% chance of expiring worthless, yielding an 8.45% additional return, or 36.70% annualized.
Implied volatility for both contracts is around 58%, while the actual trailing twelve-month volatility is 52%.
