Investors in Hubbell Inc. (NASDAQ: HUBB) gained access to new options with a December 18 expiration date today. Notable offerings include a put contract at a $500 strike price, currently bidding at $41. If sold, this contract allows an investor to buy shares at $500, effectively reducing the cost basis to $459 when factoring in the premium. The potential return if this contract expires worthless is 8.20%, or an annualized 12.16%. Odds of the option expiring worthless are estimated at 64%.
Additionally, a call contract at a $540 strike price is available, currently bidding at $52.20. Selling this contract while holding shares at the current price of $523.63 offers a potential total return of 13.10% if exercised. The chance of this contract expiring worthless is 47%, which could provide a 9.97% boost if the premium is kept. Implied volatility for the put is 36%, and for the call, it is 35%.
