“`html
Investors in Colgate-Palmolive Co. (Symbol: CL) saw new options trading begin today for the December 5th expiration. A notable put contract is available at a $77.00 strike price, currently bid at 5 cents, which implies a purchase commitment at that price, yielding a cost basis of $76.95. This represents an approximate 1% discount to the current trading price of $78.16, with a 60% chance of expiring worthless.
Additionally, a call contract is listed at a strike price of $80.00, with a bid of 40 cents. If executed as a covered call, investors could see a total return of 2.87%, assuming the stock is called away at expiration. This strike price indicates a 2% premium over the current price, with a 57% chance of also expiring worthless. The implied volatility for the put is 24%, while for the call, it is 28%.
“`
