Investors in Verisk Analytics Inc (VRSK) are now able to trade new options for the July 17th expiration, with 128 days until the contracts expire. A notable put contract at the $200.00 strike price has a current bid of $13.50, allowing sellers to effectively purchase the stock at a cost basis of $186.50, which is approximately 2% below the current trading price of $203.07. The odds of this put contract expiring worthless are estimated at 59%.
On the calls side, a covered call contract at the $210.00 strike price has a bid of $13.30. If purchased at the current price of $203.07, the total return could reach 9.96% if the stock is called away by expiration. This call is out-of-the-money by about 3%, with the odds of expiring worthless at 51%. Implied volatility for the put contract stands at 37%, while the call contract has a 36% implied volatility, compared to a trailing twelve-month actual volatility of 29%.
