Investors in Fortinet Inc. (NASDAQ: FTNT) saw new options trading commence today for contracts expiring on November 20th. A notable put contract at the $160 strike price currently bids at $11.15, allowing investors to potentially purchase shares at a net cost basis of $148.85. This reflects a 3% discount to the current trading price of $164.70, with a 61% probability that the put could expire worthless.
On the call side, a contract at the $170 strike price has a bid of $14.35. Should an investor opt for a covered call strategy, selling this contract while owning shares at $164.70 could yield a total return of 11.93% if the stock price reaches $170 by expiration date. Current estimates indicate a 48% chance that this option could also expire worthless, potentially enhancing returns by 8.71%, or 39.73% annualized.
Implied volatility for the put is at 52% and for the call at 54%, while the actual trailing twelve-month volatility stands at 40%.
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