New Options Available for Calumet Inc: March 28th Expiration

Investors in Calumet Inc are set to explore new opportunities as fresh options become available, including put and call contracts at significant strike prices. These options could influence stock price movement, showcasing attractive alternatives in trading strategies.

Date: 06-02-2025

AI Rating: 6

Options Overview
The report discusses new options available for Calumet Inc (Symbol: CLMT) expiring on March 28th. Investors interested in CLMT may find the put contract at the $16.00 strike price appealing. With the current stock price at $16.60, purchasing the contract at a premium of 80 cents could effectively reduce the cost basis of shares to $15.20. The discount presents a potential benefit for investors considering this alternative to buying shares directly.

Risk Considerations
The likelihood of the put contract expiring worthless is estimated at 62%. This indicates a relatively favorable risk-reward scenario for those who decide to sell-to-open the put, with an anticipated return of 5.00% on the cash commitment, translating to an annualized 36.53%.

Call Option Analysis
On the call side, there is a separate strategy involving the $18.00 strike price call contract, with a current bid of 95 cents. Should an investor Opt to purchase stock at $16.60 and sell the call, they commit to selling at $18.00, leading to a potential total return of 14.16% upon expiration.

Volatility Metrics
The implied volatility of the put is at 90%, while the call sits at 92%. This suggests a higher level of expected price fluctuations. Comparatively, the actual 12-month volatility is noted at 61%, hinting at potential stability against the higher implied volatilities.

This report provides valuable insights for investors considering various options strategies with Calumet Inc, particularly regarding their ability to create attractive returns relative to their current trading price. However, thorough analysis of trends and market fundamentals is advised to make informed decisions.

Stocks: CLMT