Boston Scientific Corporation (NYSE: BSX) has introduced new options for expiration on August 28, featuring a put contract at a $44.00 strike price with a current bid of $0.80. Selling to open this put contract involves committing to purchase shares at $44.00, effectively lowering the cost basis to $43.20, offering a nearly 4% discount from the current trading price of $44.86. The odds of this put contract expiring worthless are estimated at 58%, with a potential yield of 1.82% on cash commitment or 13.27% annualized.
On the call side, there’s a contract available at a $47.00 strike price, also with a bid of $0.80. Investors purchasing shares at $44.86 and selling this covered call would yield a total return of 6.55% if called away. The likelihood of this call expiring worthless is pegged at 55%, resulting in a potential extra return of 1.78% or 13.02% annualized.
Implied volatility for the put is 50% and 51% for the call, while actual trailing twelve-month volatility stands at 37%.
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