Investors in KeyCorp (Symbol: KEY) began trading new options today for the December 2027 expiration. With 885 days until expiration, these contracts offer a higher premium for sellers of puts or calls compared to those with shorter expirations.
One notable put contract at the $17.00 strike price has a current bid of $2.63. Selling this contract means an investor commits to purchasing shares at $17.00, effectively reducing their cost to $14.37 after collecting the premium. This represents a 7% discount to the current trading price of $18.27.
The odds of the put contract expiring worthless are 67%, with a potential return of 15.47% on the cash commitment, or 6.38% annualized, if it does expire worthless. The implied volatility for this put contract is 44%, while the actual trailing twelve-month volatility is calculated at 37%.
