Enovix Corp (Symbol: ENVX) has announced new options for a September 19th expiration, with 91 days until expiration. The new call contract at a $9.00 strike price currently has a bid of $1.22. Investing in the shares at $8.27 and selling the covered call could yield a total return of 23.58% if the stock is called away at expiration, excluding dividends.
The $9.00 strike price represents a 9% premium over the current trading price, which could lead the contract to expire worthless—implying a 44% probability of this outcome. If it does expire worthless, the premium collected would enhance the investor’s return by 14.75%, or 59.17% annualized.
The implied volatility for the call contract is 102%, while the trailing twelve-month volatility is calculated at 94% based on the last 250 trading days.
