Investors in TD SYNNEX Corp (SNX) gained access to new options contracts expiring on October 16, 2023. Notably, a put contract at a $210 strike price is currently bid at $14.20, offering an effective share purchase price of $195.80 for those who sell to open the contract. This represents a roughly 2% discount to the current trading price of $214.50, with a 60% likelihood of the put expiring worthless, resulting in a projected 6.76% return on cash commitment, or 13.79% annualized.
Additionally, a call contract at the $220 strike price has a current bid of $16.10. If investors opt to sell this as a covered call, they could achieve a 10.07% total return at the expiration if the stock price meets the strike price, albeit with a 48% chance of the contract expiring worthless. The implied volatility for the put is 33%, while it is 32% for the call, against a trailing twelve-month volatility of 29%.
