Paymentus Holdings Inc (Symbol: PAY) has new options available, expiring on August 15th, including a put contract at a $30.00 strike price, currently bid at $0.80. If sold, this contract obligates the investor to buy shares at $30.00, effectively lowering their cost basis to $29.20. This represents an 11% discount from the current trading price of $33.80/share.
Additionally, a call contract at the $34.00 strike price is offered at a bid of $1.60. Selling this “covered call” commits the investor to sell at $34.00, providing a potential total return of 5.33% should the stock be called away by expiration. The call is currently out-of-the-money by approximately 1%, with a 46% chance of expiring worthless.
The implied volatility for the put contract is 82%, while the call contract is at 74%. The trailing twelve-month volatility is calculated at 60% based on prior trading data.
