Investors in Pfizer Inc. (PFE) have new options available as of today for expiration on November 6th. The highlighted put contract at a $28.00 strike price has a current bid of $0.50, allowing investors to buy the stock effectively at $27.50, a 3% discount from the current trading price of $28.80. The odds of this contract expiring worthless are estimated at 61%, providing a potential 1.79% return on the cash commitment, or 15.14% annualized.
On the call side, a $30.00 strike price call contract has a current bid of $0.31. If investors buy shares at $28.80 and sell this call, they would commit to selling at $30.00, yielding a total return of 5.24% by expiration, excluding dividends. The probability of the call contract expiring worthless is currently estimated at 70%, representing a potential additional return (YieldBoost) of 1.08%, or 9.13% annualized.
Implied volatility for the put contract is at 29%, while for the call, it stands at 24%, compared to a trailing twelve-month volatility of 24% based on the last 251 trading days.
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