New options for SiriusXM Holdings Inc (SIRI) are available for expiration on September 26. A put contract at the $20.50 strike price has a bid of $0.80, allowing investors to purchase stock at an effective cost of $19.70 if executed. This represents a 3% discount to the current price of $21.06, with a 59% chance of the contract expiring worthless, potentially yielding a 3.90% return on cash commitment or 28.49% annualized.
Additionally, a call contract at the $23.50 strike price has a bid of $0.24. Purchasing SIRI shares at $21.06 and selling this call would yield a potential return of 12.73% if called away. It has a 63% chance of expiring worthless, allowing the investor to keep both the shares and the premium, which equates to a 1.14% boost or 8.32% annualized.
The implied volatility for the put options is 65%, while for the call options it is 66%. The trailing twelve-month volatility is calculated at 48% based on the last 250 trading days.
