Investors in Jabil Inc (Symbol: JBL) saw new options commence trading on October 2nd. The notable put contract is priced at a $370.00 strike with a current bid of $27.00, committing investors to purchase shares at that price, effectively reducing the cost basis to $343.00. This strike represents a 1% discount to JBL’s current trading price of $372.01, with a 55% chance of the contract expiring worthless, potentially yielding a 7.30% return on cash commitment or 53.27% annualized.
Conversely, a call contract at the $375.00 strike price is trading with a bid of $27.50. If an investor buys shares at $372.01 and sells this call as a covered call, they commit to selling the stock at $375.00. This could provide an 8.20% total return if the stock is called away, with a 48% chance of it expiring worthless, allowing the investor to keep both shares and premium, representing a 7.39% extra return or 53.96% annualized.
The implied volatility for the put is 54% and for the call is 57%, while the actual trailing twelve-month volatility sits at 45%.
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