New JOYY Inc Options Present Exciting Opportunities for Investors

Options for August 2025 Take Center Stage

Investors in JOYY Inc (Symbol: YY) have new options trading available this week, set to expire in August 2025. With 238 days until expiration, these new contracts may allow sellers of puts or calls to earn higher premiums compared to options with earlier expiration dates. Our YieldBoost formula examined the YY options chain and identified one put and one call contract worth noting.

Put Option Offers Potential Savings

The put contract at the $40.00 strike price has a current bid of $4.80. By selling this put contract, an investor commits to buying the stock at $40.00 while collecting the premium, lowering the effective purchase price to $35.20 (before broker commissions). For those looking to buy shares of YY, this could be an appealing alternative to the current market price of $40.45 per share.

This $40.00 strike represents a slight 1% discount to the current trading price, meaning it is out-of-the-money by that margin. Current analysis suggests a 62% chance that this put contract will expire worthless. Stock Options Channel will monitor these odds and provide updates on their website, with a chart detailing these numbers. If the contract does expire worthless, the premium results in a 12.00% return on the cash commitment, or an annualized return of 18.41%, which we refer to as the YieldBoost.

Call Option Opens Up Profit Potential

On the calls side, the call contract at the $45.00 strike price currently has a bid of $4.00. If an investor purchases YY stock at $40.45 per share and simultaneously sells this call contract as a “covered call,” they would commit to selling the stock at $45.00. Collecting the premium could yield a total return of 21.14% if the stock is called away at expiration in August 2025 (prior to broker commissions). However, depending on stock performance, there might be significant upside missed if YY shares rise sharply.

The $45.00 strike price represents an 11% premium to the stock’s current trading price, indicating it’s out-of-the-money by that percentage. There’s also a 48% chance that the covered call contract may expire worthless. Stock Options Channel will keep track of these probabilities over time and provide corresponding charts. If the covered call does expire worthless, the premium represents a 9.89% additional return for the investor, or an annualized 15.17%, again known as the YieldBoost.

Volatility Insights for Investors

Implied volatility for the put contract is 60%, while the call contract exhibits a 56% implied volatility. Meanwhile, we calculated the trailing twelve-month volatility at 40%, based on the last 251 trading day closing values alongside today’s price of $40.45. For more recommendations on put and call options, explore StockOptionsChannel.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.