Investors in Merck & Co Inc (MRK) gained access to new options for a November 20th expiration today. Key highlights include a put contract at the $105 strike price, with a bid of $0.43, offering a 20% discount on the current trading price of $130.63 per share. This put option carries an 88% chance of expiring worthless, potentially yielding a return of 0.41% on the cash commitment, which annualizes to 1.48%.
On the calls side, a $155 strike price contract is available with a current bid of $1.25. Selling this covered call could lead to a potential total return of 19.61% if the stock is called away at expiration, although current odds suggest an 83% chance it may expire worthless. The implied volatility for the put is 40%, while for the call it stands at 30%.
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