Investors in T1 Energy Inc (Symbol: TE) can now trade options that expire on April 10th. A notable put contract at the $6.00 strike price has a bid of 30 cents, allowing investors to potentially purchase shares at a cost basis of $5.70, representing a 14% discount from the current trading price of $6.96. Analysts estimate a 72% chance that this put contract could expire worthless, offering a projected return of 5.00% on the cash commitment or 42.48% annualized if it does.
On the call side, a contract at the $7.50 strike price has a current bid of 55 cents. Should investors buy shares at $6.96 and sell this call, they could achieve a total return of 15.66% at expiration, assuming the stock is called away. There is a 45% possibility that the call contract could also expire worthless, allowing the investor to retain both the shares and the premium collected, equating to a potential 7.90% boost in return or 67.14% annualized.
Implied volatility for the put contract is 233%, while the call contract shows 151%. The actual trailing twelve-month volatility is calculated at 113%.
