Investors in Polaris Inc (NYSE: PII) gained access to new options today, set to expire on December 18, 2023. Notably, a $45.00 put contract is currently bidding at $4.90, allowing investors to potentially purchase shares at $40.10 after accounting for the premium, which is a 6% discount from the current trading price of $48.12. The odds of this put contract expiring worthless are estimated at 66%, suggesting a possible 10.89% return on the investment, or 16.15% annualized.
On the call options side, a $50.00 strike price contract is bidding at $5.80. Investors who buy shares at $48.12 and sell this call could see a total return of 15.96% if exercised by the expiration date. However, there is a 46% chance that this contract will also expire worthless, allowing the investor to retain both shares and the premium collected. The implied volatilities for the put and call contracts are 56% and 57%, respectively, while the trailing twelve-month volatility for PII stands at 53%.
