Investors in nLight Inc (NASDAQ: LASR) can now trade new options expiring on April 24, 2024. Notably, a put contract at a $60 strike price has a current bid of $4.90, allowing investors to potentially purchase shares at an effective cost of $55.10 if sold to open. This represents a 5% discount from the current trading price of $63.28, with a 67% chance the contract may expire worthless. If it does, the premium translates to an 8.17% return on cash commitment, annualizing to 59.67%.
On the call side, a $70 strike price contract has a current bid of $6.00. If investors buy LASR shares at $63.28 and sell the call as a covered call, they could see a total return of 20.10% if the stock is called away at expiration. This $70 strike price reflects an 11% premium to the current price, with a 50% chance it may also expire worthless, in which case investors would retain both their shares and the premium. The potential premium yields a 9.48% boost, annualizing to 69.27%.
The implied volatility for the put option is 97%, while the call option’s volatility is at 92%. The actual trailing twelve-month volatility stands at 76%.
