Investors in Darling Ingredients Inc (DAR) can now access new options contracts expiring June 18. A notable put contract at a $57.50 strike price currently bids at $1.75, potentially reducing the cost basis to $55.75 for investors interested in purchasing shares, as the stock is trading at $59.38. This represents a 3% discount to the current price, with a 62% likelihood of the contract expiring worthless, leading to a returns yield of 3.04% or 17.63% annualized.
Additionally, a call contract at a $60.00 strike price is bidding at $2.55. If investors purchase shares at $59.38 and sell this covered call, they could see a total return of 5.34% if exercised, assuming the stock price increases. The likelihood of this contract also expiring worthless stands at 47%, potentially yielding an additional return of 4.29% or 24.88% annualized.
The implied volatility for the put contract is 49%, while the call contract has an implied volatility of 43%. Presently, the trailing twelve-month volatility calculated is 39%.
