Boot Barn Options Present Investment Opportunities for Investors

Investors are eyeing new options in Boot Barn (BOOT) that may offer strategic opportunities. The attractiveness of the $170.00 put and $180.00 call contracts presents potential returns while highlighting notable volatility metrics.

Date: 02-02-2025

AI Rating: 6

Options Overview
Boot Barn Holdings Inc (BOOT) has introduced new options contracts that suggest various opportunities for investors. The presence of a put contract at a $170.00 strike price, trading at a bid of $8.40, offers a compelling entry point for those seeking to invest in the company at a discount to its current share price of $174.62.

Investors who sell this put can reduce their effective cost basis to $161.60, assuming conditions remain favorable. The possibility that this put contract could expire worthless stands at 62%, implying a favorable environment for investors aiming for a return of 4.94% on the cash commitment or an annualized 36.10% yield.

Call Option Insights
On the call side, the $180.00 strike call contract, bid at $9.90, offers another lucrative opportunity. If an investor purchases BOOT shares at the current level and sells the call, they can secure an overall return of 8.75% if the stock is called away at the expiration. The odds of this contract expiring worthless sit at 51%, allowing the investor to maintain ownership while benefiting from the premium collected that could equate to an additional 5.67% return, or 41.42% annualized.
The options market around BOOT indicates fluctuations in implied volatility, with the put at 49% and call at 47%, contrasted with a trailing twelve-month actual volatility of 44%. This suggests some market stability while offering room for potential upward movement.

Stocks: BOOT