New Options for Antero Resources Corp Offer Potential Gains

A report highlights newly available options for Antero Resources Corp, providing investors with significant opportunities through attractive put and call contracts, which could yield premium benefits despite moderate market conditions.

Date: 16-09-2024

AI Rating: 7

Antero Resources Corp (Symbol: AR) has offered new options contracts for January 2027, which could impact the stock's attractiveness for investors. The report details options for both puts and calls, indicating potential benefits with a focus on time value.

The put contract at the $25.00 strike price allows investors to collect a premium of $2.50. This effectively reduces the purchase price to $22.50 if the option gets executed, representing a 5% discount from its current trading price of $26.31. This makes it an appealing alternative for those interested in purchasing shares of AR. The report suggests a 72% probability that the put may expire worthless, leading to a yield of 10.00% on the cash commitment, or an annualized return of 4.29%.

The call contract available at the $30.00 strike price has a bid of $3.75. For investors who opt to buy shares at the current level of $26.31 and sell this call, there’s potential for a total return of 28.28% if called at expiration. The contract is 14% out-of-the-money, carrying a 39% chance of expiration worthless.

Implied volatility for the put is 47% and for the call is 40%, while the actual trailing twelve-month volatility stands at 38%. This differential indicates market expectations about the stock's price movements, which can affect trading strategies.

Stocks: AR