Investors in the Global X Copper Miners ETF (COPX) witnessed the commencement of new options trading today for the January 2028 expiration. Notably, a put contract at an $80.00 strike price has attracted attention, with a current bid of $13.00. Investors selling this contract commit to purchasing shares at $80.00, effectively lowering their cost basis to $67.00, compared to the current share price of $82.21.
The $80.00 strike represents a 3% discount from the current trading price, with a 64% probability of expiring worthless. If it does expire worthless, the premium would yield a 16.25% return on cash commitment, or 8.05% annualized. In addition, a call contract at a $95.00 strike price is available with a bid of $14.50, providing an opportunity for a 33.20% return if the stock is called away, representing a 16% premium to the current price, with a 44% chance of expiring worthless.
Overall, investors are presented with varying options strategies that could enhance returns, with implied volatilities of 40% for puts and 48% for calls, compared to an actual trailing twelve-month volatility of 36%.
