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New Options for Willis Towers Watson Seen as Attractive

Investors take notice as new options contracts for WTW emerge, with a call and put contract presenting attractive opportunities. The potential yield boosts could interest buyers in the current market landscape.

Date: 
AI Rating:   7

Options Contracts Overview

The recent analysis provides insights into the new options available for Willis Towers Watson Public Ltd Co (WTW). Investors may find the put and call contracts intriguing due to their respective potential returns and underlying stock prices.

The put contract with a $330.00 strike price offers a current bid of $7.90, presenting an avenue for investors to acquire shares at a reduced cost basis of $322.10. If the put option were to expire worthless, investors would gain a premium yielding a 2.39% return on the commitment, translating to an annualized return of 16.49%. This could be appealing for market participants looking for slightly conservative investments with defined risk.

The call contract at a $340.00 strike price, with a bid of $9.10, offers a potential total return of 3.90% by the expiration date. However, should this option expire worthless as indicated by the 52% odds, the investor would not only keep the shares but also benefit from an additional yield boost of 2.71% or 18.65% annualized. This could attract investors who are cautious about market volatility while still retaining upside potential.

The implied volatilities reveal a moderate outlook, with the put at 25% and the call at 23%, suggesting some expectations of movement in the stock's price. Meanwhile, the actual trailing twelve-month volatility calculated at 17% illustrates stability, reinforcing the attractiveness of these contracts.

Overall, the new options together offer strategic pathways for WTW investors, especially amid current market conditions. The rates of return on both the put and call contracts suggest that while risk is inherent, there are favorable opportunities to capitalize on WTW's stock through options trading.

Stocks:  WTW