Investors in Jabil Inc. (JBL) began trading new options with a July 24 expiration on [date of publication]. A notable put contract at a $360.00 strike price has a bid of $31.50, allowing sellers to effectively purchase the stock at a reduced cost of $328.50, compared to today’s market price of $362.80. This represents a potential 1% discount on the current stock price with a 55% chance of expiring worthless.
Additionally, a call contract at a $365.00 strike price, with a bid of $31.30, enables investors to commit to selling shares if the stock rises. If priced at $365.00 at expiration, this would yield a total return of 9.23% (excluding dividends). The likelihood of this covered call expiring worthless stands at 47%. Both contracts are classified as out-of-the-money by approximately 1%.
Implied volatilities for the put and call contracts are 65% and 66%, respectively, while the actual trailing twelve-month volatility is calculated at 42%.
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