Investors in Sanmina Corp (SANM) have new options available with a December 18th expiration. The new options include a put contract with a $220 strike price, currently bid at $44. Selling this put would result in a commitment to buy shares at $220, effectively lowering the purchase price to $176, a 22% discount from the current trading price of $226.84. The chances of the contract expiring worthless are estimated at 65%, potentially yielding a 20% return on cash commitment.
On the calls side, a $240 strike call contract is bid at $47. Purchasing shares at the current price and selling this call would yield a 26.52% return if exercised. The approximate 6% premium to the current share price indicates a 41% chance of the contract expiring worthless, allowing the investor to keep both the shares and the premium, potentially yielding a 20.72% return.
The implied volatility for the put contract is 77% and 76% for the call contract, while the trailing twelve-month volatility stands at 65%.
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