Investors in DuPont (NYSE: DD) saw the introduction of new options trading today for the November 20th expiration. Key details include a put contract at a $145.00 strike price with a current bid of $8.00, allowing sellers to potentially purchase shares at an effective cost basis of $137.00, yielding a possible return of 5.52% on cash commitment if the contract expires worthless. The odds of this occurring are currently estimated at 57%.
Additionally, there is a call contract available at the $150.00 strike price with a bid of $7.60. Should investors sell this covered call while holding DD shares at the current price of $146.18, the potential return is approximately 7.81% if exercised by expiration. The chances of the call expiring worthless are around 50%, potentially granting a premium return of 5.20% on the investment.
The implied volatility for the put contract stands at 36%, while the call contract is at 34%. The actual trailing twelve-month volatility of DD is calculated at 31%.
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