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Options Trading Insights for PVH Corp: Potential Strategies

Options trading for PVH Corp begins, offering investors strategies. The new May contracts include a put at $65 and a call at $75. With potential returns of up to 19.42%, traders have attractive choices ahead.

Date: 
AI Rating:   7
Options Trading Overview
The report discusses new options available for trading in PVH Corp (Symbol: PVH), specifically two contracts with significant details for investors. The first is a put contract with a $65.00 strike price that gives an attractive alternative to buy shares of PVH at a net cost of $60.30 due to the premium. The premium represents a return of 7.23% on cash commitment, or an annualized 46.30%. Furthermore, the odds of this put contract expiring worthless are 58%.

Call Contract Analysis
On the call side, the $75.00 strike price offers a bid of $2.00. If an investor sells this covered call, the total return could reach 16.77% if the stock is called away by expiration. This call contract can potentially expire worthless with a 65% probability, allowing investors to keep both the shares and premium collected, which presents an additional boost of 3.03% or 19.42% annualized.

Implied Volatility Insights
The implied volatility for the put contract is noted as 65%, and for the call contract, 60%, while the actual trailing twelve-month volatility is calculated at 41%. These figures represent the market's expectations for future price fluctuations of the stock, which can directly impact investor sentiment and stock price movements.

This analysis indicates that while specifics on earnings, revenue growth, or net income are not provided, the favorable odds for both put and call contracts suggest potential bullish sentiment in the near term for PVH Corp. Investors should keep an eye on the company’s performance and the actual outcomes of these options as expiration approaches.
Stocks:  PVH