Investors in Delta Air Lines Inc (DAL) gained access to new options contracts with a July 17th expiration, presenting potential opportunities for options trading. The put contract at a $50.00 strike has a current bid of $0.83, which might allow investors to buy shares at an effective cost of $49.17, marking a 27% discount from the current trading price of $68.50. Analyses suggest there is a 90% chance that this contract could expire worthless, offering a possible 1.66% return on investment, or 6.18% annualized.
Conversely, a call contract with a $70.00 strike price offers a current bid of $3.60. If shares are purchased at $68.50 and the call is sold, investors could see a total return of 7.45% if the stock is called away at expiration. There is a 48% probability that the call may expire worthless, allowing investors to retain both their shares and the premium, potentially boosting returns by 5.26% or 19.57% annualized.
