Investors in Essent Group Ltd (ESNT) gained new options to consider with the introduction of March 20th contracts, including a noteworthy put contract at a $60.00 strike price. Currently, this contract has a bid of 5 cents, allowing investors to potentially purchase shares at a net cost basis of $59.95, an approximate 2% discount from the current trading price of $61.07.
There is a 62% likelihood that the put contract may expire worthless, according to analytical data. Should this occur, the premium would yield a 0.08% return on cash commitment, equivalent to an annualized 0.48%. The implied volatility of this put contract is indicated at 33%, contrasting with the actual trailing twelve-month volatility of 22%.
