Investors in Kenvue Inc (KVUE) saw new options trading begin today for expiration in December 2027. The put contract at a $20.00 strike price has a current bid of $2.35, offering a cost basis of $17.65 per share if sold-to-open. This represents a 6% discount from the current stock price of $21.38, with a 65% likelihood of the put expiring worthless, potentially providing an 11.75% return on cash commitment, or 5.08% annualized.
A call contract at a $25.00 strike price has a current bid of 93 cents. If investors buy shares at $21.38 and sell-to-open this call contract, they could achieve a total return of 21.28% if the stock is called away by expiration. The $25.00 strike represents a 17% premium over the current trading price, with a 58% chance of the call expiring worthless, leading to a 4.35% YieldBoost if it does.
The implied volatility for the put contract is 30%, while for the call contract, it is 25%. The actual trailing twelve-month volatility stands at 24% based on the last 249 trading days.
