Investors in TKO Group Holdings Inc (TKO) began trading new options today for an August 15th expiration. Key figures include a put contract at a $160.00 strike price, currently bid at $6.70, which could result in a cost basis of $153.30 if the contract is sold. This represents a 2% discount to the current trading price of $164.04 per share and has a 60% chance of expiring worthless, which would yield a 4.19% return on cash commitment (21.23% annualized).
On the calls side, a $165.00 strike price call contract is bid at $8.30. Selling this call while holding shares at $164.04 could yield a total return of 5.64% if the stock is called away at expiration, with a 48% chance of expiring worthless, which would result in a 5.06% boost to return (25.65% annualized). The implied volatility for the put contract is 38%, while the call’s implied volatility is 37%.
