Investors in CRH plc (Symbol: CRH) saw new options begin trading today, focusing on contracts expiring on December 18. The put contract at the $110.00 strike price has a current bid of $7.10, allowing investors to potentially acquire shares at an effective cost of $102.90, representing a 4% discount to the current market price of $114.41. Current analysis indicates a 64% chance that this put contract could expire worthless.
Conversely, a call contract at the $120.00 strike price has a current bid of $8.60. If purchased, this would allow for a potential total return of 12.40% by December 18 if the shares are sold at that strike price. This strike represents a 5% premium to today’s share price, with a 49% likelihood that the call contract could also expire worthless, resulting in a 7.52% yield boost to investors if successful.
Implied volatility for the put contract is at 34%, while the call stands at 32%. The trailing twelve-month volatility, based on the last 250 trading days, is calculated to be 30%.
