Investors in Lumentum Holdings Inc. (Symbol: LITE) gained access today to new March 2027 options contracts. The put contract at a $910.00 strike price has a bid of $278.00, allowing investors to potentially acquire shares at a significantly reduced cost basis of $632.00, compared to the current trading price of $923.26 per share. This strike price is approximately 1% less than the current market value, with the odds of the put expiring worthless at 69%.
On the call side, a $980.00 strike price is available with a bid of $290.00. If shares are purchased at the current price of $923.26 and the call is sold, investors could achieve a total return of 37.56% by the March 2027 expiration. This strike is approximately 6% above current trading prices, with a 35% chance of expiring worthless, allowing investors to keep both shares and the premium collected. Implied volatilities for the put and call contracts are 94% and 93%, respectively, while the actual trailing volatility stands at 80%.
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