Investors in EZCORP, Inc. (Symbol: EZPW) witnessed new options trading commence today for expiry on April 17th, 2024. The newly available contracts allow for the potential of higher premiums due to the 100 days until expiration. A call contract at the $22.50 strike price currently has a bid of $0.75, representing a 4% premium over the current share price of $21.66.
If an investor were to purchase shares and sell this covered call, the total return could reach 7.34% if the stock is called away by expiration, excluding dividends. Additionally, if the contract expires worthless, the investor would retain both their shares and the premium, translating to a potential 12.64% annualized return. The implied volatility for this call contract stands at 54%, while the actual trailing twelve-month volatility is measured at 31%.
