Wheaton Precious Metals Sees Fresh Options Trading Activity

Wheaton Precious Metals Corp has launched new options for April 4th. Investors may find the put and call contracts attractive, with the possibility for potential returns if certain conditions are met. This trading activity could influence stock price stability.

Date: 13-02-2025

AI Rating: 7

Options Trading Overview
Wheaton Precious Metals Corp (WPM) is experiencing heightened trading activity with new options available for the April 4th expiration. The put contract at the $68.00 strike price has a bid of $2.55, allowing investors to purchase shares at an effective cost of $65.45 if they engage in the sell-to-open strategy. This represents an approximate 1% discount to the current trading price of $68.36, offering an attractive alternative for investors looking to buy shares.

Winning Potential
This put contract has a 56% likelihood of expiring worthless, potentially yielding a 3.75% return on the cash commitment or an annualized return of 27.40%. Meanwhile, the call contract available at the $69.00 strike price holds a bid of $2.85, providing a pathway for a return of 5.11% upon expiration if the stock is called away.

Striking Balance
The likelihood of the call contract also expiring worthless stands at 49%, allowing investors to retain their shares while pocketing the premium, potentially leading to a 4.17% boost to overall returns or annualized gains of 30.46%.

Currently, both the implied volatility for the mentioned contracts is at 32%, while the actual trailing twelve-month volatility is measured at 30%. Given these factors, the options trading activity may herald possible influences on stock prices as investors leverage their positions based on expected future performance.

Stocks: WPM