On October 5, 2023, new options for TJX Companies (symbol: TJX) were introduced, expiring on August 15, 2023. The contract details include a put option with a $110.00 strike price currently bid at $0.22, reflecting an approximate 14% discount to the current trading price of $128.24 per share. Analysts project an 87% chance that this put contract will expire worthless, yielding a 0.20% return on the cash commitment.
Additionally, a call option at the $130.00 strike price has a current bid of $3.65. If exercised at expiration, it could provide a total return of 4.22% based on the current stock price. There is a 51% chance that this call will also expire worthless, representing a potential 2.85% boost or 14.43% annualized return if the investor retains their shares and the premium. The implied volatility for the put is 35%, while for the call it is 20%.
