WLK

Put Contract Overview: The $65.00 put contract has a current bid of 5 cents, allowing investors to purchase WLK shares at a cost basis of $64.95, which is a 12% discount from the current price of $73.94. There is a 77% chance the contract may expire worthless, offering a potential 0.08% return on cash commitment.

Call Contract Overview: The $80.00 call contract has a bid of $2.90, enabling investors to sell WLK shares at that price, which represents a 12.12% total return if exercised. There is a 58% chance this contract may also expire worthless, providing a potential 3.92% additional return.

Volatility Insights: The implied volatility for the put contract is 52% and for the call contract is 53%, while the actual trailing twelve-month volatility is calculated at 45%.

YieldBoost Concept: The article discusses the concept of YieldBoost, highlighting potential returns from both put and call contracts, and encourages investors to track these options and their changing odds on the Stock Options Channel website.

Facility Closures: Westlake plans to close several chlorovinyl and styrene facilities in North America, resulting in 295 job cuts and approximately $415 million in pre-tax costs in Q4.

Specific Plants Affected: The closures include a polyvinyl chloride plant in Aberdeen, Mississippi, a vinyl chloride monomer plant in Lake Charles, Louisiana, and a styrene production plant at the same site, among others.

Continued Supply: Despite the closures, Westlake will maintain supply to customers from its seven other chlorovinyl facilities in North America.

Market Context: The company’s actions are part of a broader strategy to navigate challenging market conditions, as indicated in their recent communications.