Investors in the Direxion Daily South Korea Bull 3X ETF (KORU) saw new options trading commence on [date] with contracts expiring in January 2027. A put contract at the $390 strike price has a current bid of $160.40, allowing sellers to potentially reduce their cost basis to $229.60, a significant discount from the current share price of $435.75. This put is currently 10% out-of-the-money, with a 76% probability of expiring worthless, offering a potential 41.13% return.
On the call side, a contract at the $440 strike price is currently bid at $176.30, offering a possible total return of 41.43% if the stock is called away at expiration. This strike price is about 1% above the current trading price and carries a 29% chance of expiring worthless, providing a potential additional yield of 40.46%. The implied volatility for the put contract is 140%, while it is 130% for the call contract. The actual trailing twelve-month volatility is calculated at 107%.
