Investors in Beyond Meat Inc (BYND) saw new options begin trading today for expiration on July 17, 2023. Notably, a call contract at the $1.50 strike price is currently bid at 1 cent, while the stock trades at $1.01 per share. If an investor purchases shares at this price and sells to open the call contract, they could see a total return of approximately 49.5% if the stock is called away at expiration.
The current price of the $1.50 strike represents an approximate 49% premium to the current trading price, presenting the potential for the call contract to expire worthless with a 35% probability, allowing investors to retain both the stock and the collected premium. The implied volatility for this contract is 198%, while the actual trailing twelve-month volatility is calculated at 188%.
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