Suncor Energy Inc (SU) launched new options trading on May 29th, with notable contracts identified for investors. The put contract at a $65.00 strike price has a current bid of $1.10, allowing investors to potentially acquire shares at an effective price of $63.90, reflecting a 1% discount to the current trading price of $65.33. There is a 56% chance the put option may expire worthless, providing a potential 1.69% yield on the cash commitment, annualized to 12.35%.
On the call side, the $66.00 strike price call contract, with a bid of $1.15, allows investors to commit to selling shares at that price. If successful, this would yield a total return of 2.79% at expiration, excluding dividends. The likelihood of this call expiring worthless stands at 49%, with potential extra return at 1.76% or annualized to 12.85%.
Implied volatility for both contracts is approximately 34%, contrasted with Suncor’s actual trailing twelve-month volatility of 22%.
