Investors in US Bancorp (Symbol: USB) gained new options for trading expiring on July 17, 2023, presenting potential opportunities due to the 94 days until expiration. Notably, a put contract at the $47.50 strike price has a current bid of $0.50, offering an attractive entry point as it is approximately 14% below the current trading price of $55.23 per share. This setup provides a cost basis of $47.00 if exercised, with an 84% chance the option may expire worthless.
Additionally, a call contract for the $57.50 strike price is available at a bid of $0.35. Investors buying shares at the current price and selling this call could realize a 4.74% return if the stock is called away at expiration, while there’s a 58% probability that the contract will also expire worthless, allowing them to keep both the shares and the premium. The implied volatility for the put is 35% and for the call is 27%, contrasting with an actual trailing twelve-month volatility of 22%.
