**Investors in Kinross Gold Corp. (KGC) have new options available for May 29, 2023.** A put contract at a $31.00 strike price is currently bid at $1.54, allowing investors to commit to purchasing the stock while effectively lowering the cost basis to $29.46 assuming expiration. This represents a 6% discount from the current trading price of $32.96, with a 67% chance of the put contract expiring worthless, potentially yielding a 4.97% return on the cash commitment, or 36.26% annualized.
Additionally, there is a call contract at a $34.00 strike price with a current bid of $0.55. Selling this call while owning shares at $32.96 could result in a total return of 4.82% if exercised by the expiration date. The call is out-of-the-money by approximately 3%, with a 50% chance of expiring worthless, providing a potential 1.67% return boost or 12.18% annualized if it does not get exercised. Current implied volatilities are 60% for the put and 58% for the call, while trailing twelve-month volatility stands at 50%.
