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Investors in Vail Resorts Inc (MTN) were presented with new options for expiration on November 21st. Notable contracts include a put at the $145.00 strike price, with a current bid of $5.70. Selling this put would mean committing to purchase shares at $145.00, effectively lowering the cost basis to $139.30. This represents a 3% discount from the current trading price of $150.14.
Additionally, a call contract at the $155.00 strike price has a bid of $4.00. If shares are purchased at the current price of $150.14 and the call is sold, investors could see a return of 5.90% if the stock is called away upon expiration. The odds of both contracts expiring worthless are approximately 60% for the put and 58% for the call.
Implied volatility for the put is at 40%, while the call sits at 34%. The actual trailing twelve-month volatility is calculated to be 34% based on the last 250 trading days.
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