Investors in Live Nation Entertainment Inc (LYV) saw new options trading begin today for contracts expiring on November 20th. The put contract at a $180.00 strike price has a current bid of $8.10, suggesting a potential purchase price of $171.90 after accounting for the premium. This represents an approximate 2% discount from the current share price of $183.79, with a 59% chance of expiring worthless, offering a potential 4.50% return on cash commitment, or 16.42% annualized.
Additionally, a call contract at the $185.00 strike price has a current bid of $10.00. If an investor sells this covered call, they would commit to selling the stock at $185.00, potentially yielding a total return of 6.10% if exercised. The call is out-of-the-money by about 1%, with a 48% chance of expiring worthless, offering a potential 5.44% return or 19.85% annualized.
Implied volatility for both contracts is approximately 32%, while actual trailing twelve-month volatility for LYV is calculated at 31%.
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