Investors in BorgWarner Inc (Symbol: BWA) gained access to new options today, expiring in January 2027. The newly available $67.50 put contract has a current bid of $7.70, allowing sellers to purchase the stock at that price while effectively reducing the cost basis to $59.80. This represents a potential 1% discount from the current trading price of $68.08, with a 60% chance the option may expire worthless. If it does, the premium would yield an 11.41% return on the cash commitment.
On the call side, a $70.00 strike price contract is available with a current bid of $8.30, offering a 15.01% total return if the stock is called away by the expiration date. This contract presents a 3% premium to the current stock price, with a 44% chance it will also expire worthless, potentially allowing investors to keep both shares and collected premiums. The implied volatility for both contracts stands at approximately 47%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
