Investors in Emerson Electric Co. (EMR) can now trade new options set to expire on July 10. A notable put contract at the $139.00 strike price has a current bid of $3.50, allowing sellers to establish a cost basis of $135.50 per share if exercised. This represents an approximately 1% discount from the current share price of $140.21, with a 53% chance the put may expire worthless, which could yield a 2.52% return on cash commitment, or 21.37% annualized.
On the call side, there’s a $141.00 strike price call option available for a bid of $3.30. If exercised, it offers a potential return of 2.92%, assuming the stock is called away at the July expiration. This strike price is also around 1% above the current trading price, with a 52% chance of the contract expiring worthless, potentially providing a 2.35% yield boost or 19.98% annualized.
Both option contracts reflect an implied volatility of 30% for the put and 32% for the call, amidst an actual trailing twelve-month volatility of 30%.
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