New options for LKQ Corp (Symbol: LKQ) are available, expiring on October 17th. Investors can explore a put contract at a $37.50 strike price with a current bid of 45 cents, presenting an entry point for potential buyers at a cost basis of $37.05, a 2% discount from the current trading price of $38.45. The odds of this contract expiring worthless are estimated at 60%, with a premium return of 1.20% on cash commitment, annualized at 4.66%.
On the call side, there’s a $40.00 strike price option with a current bid of 25 cents. Selling this call after purchasing shares at $38.45 could yield a total return of 4.68% upon expiration if the shares are called away. The current likelihood of this contract expiring worthless stands at 55%, with a potential additional return of 0.65% to the investor, annualized at 2.52%.
Implied volatility for the put contract is 36% and for the call contract is 34%. The actual trailing twelve-month volatility, considering the last 250 trading days, is calculated at 30%.
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