Investors in Altria Group Inc (NYSE: MO) can now access new options with a July 10th expiration date. Notably, the $70.00 strike price put contract has a current bid of 5 cents. Selling to open this put contract means committing to purchase shares at $70.00, lowering the effective cost basis to $69.95 after including the premium. This presents an attractive alternative compared to the current trading price of $72.55 per share, reflecting an approximate 4% discount.
The odds of the $70.00 put contract expiring worthless are estimated at 65%. If it does expire worthless, the premium collected would yield a return of 0.07% on the cash commitment, which annualizes to 0.61%. The implied volatility for this put contract is 29%, while the trailing twelve-month actual volatility stands at 23%.
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