Investors in Albemarle Corp. (NYSE: ALB) saw new options trading begin on May 8, 2023. Notable options include a put contract at a $180 strike price, currently bid at $13.90, which implies a cost basis of $166.10 if exercised, presenting a 1% discount to today’s trading price of $181.00. The odds of this contract expiring worthless are approximately 56%, potentially yielding a 7.72% return or 65.55% annualized.
Additionally, a call contract at a $182.50 strike, with a current bid of $14.15, could provide an 8.65% total return if executed at expiration, although it comes with a risk of possibly expiring worthless—an outcome with current odds of 47%. The implied volatility for both the put and call contracts stands at 67% and 68%, respectively, while actual trailing volatility is calculated at 65%.
