Investors in Regal Rexnord Corp (NASDAQ: RRX) can now explore new June 18th options, with notable activity around two contracts. A put option at the $185.00 strike price has a current bid of $10.20, offering a potential cost basis of $174.80 per share, compared to the current trading price of $194.22, representing a nearly 5% discount. The estimated probability of this put expiring worthless is approximately 64%, equating to a potential 5.51% return on cash commitment, or 31.94% annualized.
On the call side, a $200.00 strike price call option is soliciting bids at $13.70. If an investor buys at the current share price and sells this call as a covered call, they could realize a total return of 10.03% if the stock is called away by June 18th. The likelihood of the call expiring worthless is estimated at 50%, which would grant the investor both the shares and the premium collected, translating into a 7.05% additional return, or 40.87% annualized. Implied volatility for the put is noted at 53% while the call is at 54%.
