Investors in Ares Management Corp (ARES) gained access to new options for March 2027 today, with a notable put contract available at a $125 strike price. The current bid for this contract is $16.60, presenting an attractive opportunity for those looking to invest; selling the put allows for a potential cost basis of $108.40 if ARES shares are purchased at $125. If the put expires worthless, the premium could yield a 13.28% return on cash commitment or 19.62% annualized, with a current 60% chance of expiration.
Additionally, a call contract with a $130 strike price has a bid of $16.50. Investors opting for this covered call strategy would sell their ARES shares at a profit if the stock reaches that price. This could result in a total return of 16.52% if the call gets executed, although there is a 46% chance the contract could expire worthless, allowing investors to keep both their shares and premium, representing a 13.12% return boost. Current trading price for ARES is $125.73.
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