Investors in Kinross Gold Corp. (KGC) have new options trading available with a May 22 expiration date, featuring a put contract at a $31.00 strike price with a current bid of $0.68. This option allows investors to potentially buy shares at approximately 1% less than the current trading price of $31.32, effectively reducing their cost basis to $30.32 if they sell-to-open the contract. Current analytics suggest a 57% chance that the put may expire worthless, resulting in a potential annualized return of 16.01% if it does.
On the call side, a contract at a $32.00 strike price is available with a bid of $0.28, presenting a scenario for investors to sell shares at a 2% premium over the current price, fetching a total return of 3.07% at expiration. There’s a 49% chance this covered call contract might also expire worthless, allowing investors to retain both their shares and the premium, which would translate to an annualized return of 6.53%.
The implied volatility for the put contract is 63%, while the call contract’s implied volatility stands at 58%. The trailing twelve-month volatility of Kinross Gold is calculated to be 51%.
