Investors in Jabil Inc (JBL) began trading new options for July 31, 2023, focusing on a put contract with a $360.00 strike price and a current bid of $28.70. If sold to open, this put would commit the buyer to purchase shares at $360.00, effectively reducing the cost basis to $331.30, representing a 1% discount from the current trading price of $363.88. The odds of the contract expiring worthless are estimated at 58%, potentially yielding a return of 7.97% on the cash commitment, or 58.20% annualized.
Additionally, there is a call contract available at a $370.00 strike price, with a bid of $32.50. If held as a covered call against shares bought at the current price, it could offer a total return of 10.61% if exercised, with a 46% chance of expiring worthless, allowing the investor to keep both the shares and premium. Implied volatility for the put is 64%, while it is 66% for the call, contrasting with an actual trailing volatility of 42%.
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