New options for Tyson Foods Inc (Symbol: TSN) became available today, expiring on November 20th, allowing investors to consider selling puts or calls. The newly listed put contract is at a $52.50 strike price, currently bid at 5 cents, with a 66% chance of expiring worthless. If sold, the investor would effectively purchase shares at a cost basis of $52.45, which is about 4% below the current trading price of $54.85.
On the call side, a $57.50 strike price contract has a bid of 30 cents. Selling this covered call could yield a 5.38% return if exercised, while there is a 60% chance it will expire worthless. The implied volatility for the put contract is 29%, while it is 31% for the call contract. The actual trailing 12-month volatility stands at 25%.
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