Investors in Kinross Gold Corp. (NASDAQ: KGC) saw new options trading begin on July 31, 2023. Two particularly notable contracts include a put option with a strike price of $21.00, currently bid at 22 cents, allowing an investor to effectively purchase shares at $20.78, compared to the current market price of $23.82—a roughly 12% discount. There is a 73% probability that this put contract may expire worthless.
On the calls side, a $24.00 strike call option is bid at 19 cents, allowing investors to potentially sell shares for $24.00, which represents a 1% premium to the current price. If the call expires worthless, investors would retain their shares and gain an extra return of 0.80%, translating to an annualized yield of 5.82%. Current implied volatilities for the put and call contracts stand at 87% and 59%, respectively.
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