Investors in Gulfport Energy Corp. (NYSE: GPOR) can now access new options expiring on October 16th, 2023. A notable opportunity involves a put contract at a $200.00 strike price with a current bid of $18.10. Selling this contract obligates the investor to buy GPOR shares at $200.00, effectively lowering their cost basis to $181.90, a 12.6% discount compared to the current trading price of $208.38. The odds of this put contract expiring worthless are currently estimated at 62%.
On the calls side, there’s a $210.00 strike price call option with a bid of $22.10. By purchasing shares of GPOR at $208.38 and selling this call as a covered call, investors could achieve a total return of 11.38% if the stock gets called away at the expiration. Notably, the probability of this call expiring worthless stands at 45%. Both contracts exhibit implied volatility of roughly 39%, while Gulfport’s trailing twelve-month volatility is calculated at 38%.
