Investors in KeyCorp (Symbol: KEY) gained access to new options today, set to expire on November 20, 2023. A notable put contract at the $22.00 strike has a current bid of $1.45, offering a potential cost basis of $20.55 per share, representing a 2% discount from the current trading price of $22.45. The odds of this put contract expiring worthless are estimated at 58%, potentially yielding a return of 6.59% on the cash commitment if it does.
On the call side, a $25.00 strike call contract is currently bid at $0.80. If exercised, it could provide a total return of 14.92% based on the current price, but there is a 67% chance it will expire worthless, allowing investors to retain both the shares and the premium, translating to an additional return of 3.56%. The implied volatility for both contracts is approximately 28%, while the trailing twelve-month volatility is calculated at 25%.
