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Investors in Fox Corp (FOXA) saw the introduction of new options set to expire on November 14th. A notable put contract at a $60.00 strike price has a current bid of 5 cents, allowing investors to commit to purchasing shares at that price while collecting a premium, effectively reducing the cost basis to $59.95 per share, compared to the current market price of $62.05.
The $60.00 strike represents a 3% discount to the trading price, with a 64% probability that the put contract will expire worthless. Should this occur, it would result in a 0.08% return on the cash commitment, or a 0.71% annualized return. The implied volatility for this put contract is 36%, while the actual trailing twelve-month volatility stands at 29%.
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