Investors in Kinross Gold Corp. (KGC) saw new options trading begin today for the May 8th expiration. A notable put contract is available at a $28.00 strike price with a current bid of 6 cents. Selling this put would allow an investor to purchase shares at $28.00, effectively lowering their cost basis to $27.94, compared to the current trading price of $28.91, representing an approximate 3% discount.
Additionally, there’s a call contract at the $30.00 strike price with a bid of 8 cents. If an investor buys KGC shares at $28.91 and sells this call as a covered call, they’re committing to sell at $30.00, potentially yielding a total return of 4.05% if exercised. The odds of both the put and call contracts expiring worthless are roughly 60% and 53%, respectively.
The implied volatility for the put contract is 62%, while for the call, it’s 60%. The trailing twelve-month volatility is calculated at 50%.
