Investors in US Foods Holding Corp (USFD) observed the launch of new options trading today for the August 21st expiration. Notable contracts include a put option at a $77.50 strike price, currently bid at 65 cents, allowing investors to potentially purchase shares below the current price of $82.82. This represents a roughly 6% discount, with a 72% chance that the put may expire worthless, yielding a 0.84% return on cash commitment or 3.12% annualized.
Additionally, a call option at an $85.00 strike price is being bid at $2.35, allowing investors to sell their shares at this price while receiving the premium. If the stock is called away, investors could realize a total return of 5.47% at expiration, depending on market conditions, with a 51% probability of the call expiring worthless, resulting in a 2.84% return or 10.57% annualized. The current trading price of USFD is $82.82.
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