Exploring New Opportunities in Par Pacific Holdings Inc (PARR)
Investors tracking Par Pacific Holdings Inc (PARR) have recently encountered new options that will expire in July 2026. With 346 days until these contracts mature, this timeline offers a unique chance for option sellers to secure a more attractive premium than those available for shorter-term options.
The Put Contract Insights
Among the newly available contracts, one put option stands out: the $30.00 strike price. Presently, this contract has a bid price of $3.50. If an investor decides to sell this put contract, they commit to buying the stock at $30.00, while also collecting the premium. This effectively lowers the cost basis of the shares to approximately $26.50, excluding any broker fees. For those interested in acquiring PARR shares, this could be a compelling alternative compared to the current market price of $30.98 per share.
The current price of $30.00 represents about a 3% discount to the market value, making this put option out-of-the-money by that margin. Analysts estimate a 66% probability that the contract may expire without value. The ongoing market data will be monitored, and trends will be shared on the relevant contract detail page for easy access. Should the option expire worthless, the investor could potentially see an 11.67% return based on their cash commitment, which translates to an annualized return of 12.31%.
Call Contract Insights
On the calls side, the $35.00 strike price has attracted attention with a bid of $3.40. For an investor seeking to buy PARR shares at the ongoing price of $30.98 and sell this call as a covered call, they would be agreeing to sell their stock at $35.00. Including the premium received, this strategy could yield a total return of about 23.95% if the shares are called away at expiration (excluding dividends and broker fees). However, it’s essential to note the upside potential could be significant if PARR’s stock performs exceptionally well.
The $35.00 strike position is around a 13% premium relative to the current trading price, thereby making the call contract out-of-the-money by that percentage. Analysts have calculated a 46% chance that this covered call might also expire worthless, allowing the investor to retain both their shares and the premium received. Continuous monitoring of these odds and historical data on option contracts will be conducted for informed decision-making.
Volatility and Market Conditions
The implied volatility for the put contract is currently at 59%, while the call contract holds an implied volatility of 54%. For context, the actual trailing twelve-month volatility, computed from the last 250 trading days along with today’s price of $30.98, stands at 54%.
These volatility metrics help investors understand the potential fluctuations in PARR’s stock price, informing strategies for both buying and selling options.
Additional Resources
For more varied options contracts that could be appealing, participants are encouraged to explore dedicated platforms providing insights and analytics tailored to options trading. This exploration may yield additional opportunities that align with individual investment strategies.
Understanding the dynamics of these options, including potential returns and risks, is essential for investors looking to capitalize on market fluctuations surrounding Par Pacific Holdings Inc.
