Devon Energy Corp. (NYSE: DVN) has introduced new options for the July 24th expiration, including a notable put contract at a $42.00 strike price with a bid of 90 cents. This allows investors to commit to purchasing shares at that price while effectively lowering their cost basis to $41.10, providing an 8% discount from the current trading price of $45.56. Analysts estimate a 74% probability that the put contract will expire worthless, potentially yielding a 2.14% return or an annualized 15.64%.
On the calls side, a $46.00 strike call contract is available, with a current bid of 55 cents. If shares are purchased at $45.56 and the call is exercised, investors could realize a total return of 2.17% at expiration. This call contract has a 49% chance of expiring worthless, allowing investors to retain their shares and the premium, representing a potential 1.21% additional return or 8.81% annualized.
The implied volatility for both contracts stands at approximately 40%, while actual trailing twelve-month volatility is calculated at 34%.
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