Investors in Wayfair Inc (W) began trading new options today for the March 2027 expiration. Notably, a put contract at a $77.50 strike price currently has a bid of $16.00, allowing investors to potentially purchase shares at an effective cost basis of $61.50, which is approximately 2% below the current trading price of $79.34. Analysts suggest a 66% chance that the put contract could expire worthless, offering a potential 20.65% return on cash commitment, or 22.63% annualized.
Additionally, a call contract at the $85.00 strike price has a bid of $17.15. If an investor purchases shares at $79.34 and sells this call, they could realize a total return of 28.75% if the stock is called away by expiration. The call’s odds of expiring worthless stand at 39%, potentially resulting in a 21.62% boost to returns, or 23.69% annualized.
Implied volatility for the put is at 69% while the call sits at 68%. The actual trailing twelve-month volatility is calculated at 64%.
