Rivian Automotive Inc (RIVN) has launched new options trading for contracts expiring on April 24th, 2024. Investors can explore a put option with a strike price of $14.50, currently bidding at 6 cents, which could lower their effective purchase price to $14.44 per share, compared to the current trading price of $15.17. The current odds of the put contract expiring worthless stands at 62%.
Additionally, a call option with a strike price of $18.50 has a bid of 36 cents. Should investors purchase shares at $15.17 and issue this call option, they could see a total return of 24.32% if the shares are called away by expiry. This call option also has a 62% chance of expiring worthless, allowing investors to retain their shares and the premium collected. The implied volatility for the put contract is 77%, while the call contract’s is at 67%.
