Investors in Jazz Pharmaceuticals plc (JAZZ) have new options available with an expiration date of August 15th. Notably, a put contract at the $105.00 strike price has a current bid of $4.10, allowing investors to potentially acquire shares at a cost basis of $100.90, which is approximately a 3% discount to the current trading price of $107.83. The odds of the put expiring worthless are estimated at 61%, offering a potential return of 3.90% on cash commitments or 25.45% annualized.
On the call side, a contract at the $110.00 strike price is bid at $5.10. If an investor purchases JAZZ shares at $107.83 and sells this covered call, they could realize a total return of 6.74% if called away by the August 15th expiration. The likelihood of this call expiring worthless stands at 49%, yielding a potential additional return of 4.73% or 30.83% annualized.
The implied volatility for the put stands at 47% while the call’s is at 45%. The actual trailing twelve-month volatility is calculated to be 34% based on the last 250 trading days.
