New June Options Available for Microsoft: Key Insights for Investors

Investors in Microsoft Corporation (Symbol: MSFT) gained access to new options today, expiring on June 6th. Our analysis reveals one notable put and one call contract that may be of interest to market participants.

Put Contract Analysis

The put contract with a strike price of $380.00 has a current bid of $13.80. By selling-to-open this put contract, an investor agrees to buy MSFT stock at $380.00 while also collecting the premium. This arrangement lowers the effective cost basis of the shares to $366.20, prior to broker commissions. For investors looking to purchase MSFT shares, this could be an appealing alternative to the current market price of $382.91 per share.

Notably, the $380.00 strike reflects approximately a 1% discount from the current trading price, indicating it is out-of-the-money by that amount. Current analytics suggest a 55% chance that the put contract could expire without value. Our platform will monitor these odds over time, providing updates on changes via a detailed chart on our website.

If the contract expires worthless, selling this put option would yield a return of 3.63% based on the cash commitment—equating to an annualized return of 30.83%, known as the YieldBoost.

Call Contract Insights

On the call options side, the contract at a $385.00 strike price boasts a current bid of $13.75. Should an investor acquire shares of MSFT at the existing price of $382.91 and subsequently sell-to-open this call contract, they are obligating themselves to sell the shares at $385.00. Including the premium received, this strategy could yield a total return of 4.14% if MSFT is called away at expiration, excluding any dividends and broker fees.

Investors should take into account the extensive upside potential if MSFT’s stock shares experience significant appreciation. Analyzing MSFT’s twelve-month trading history is crucial for informed decision-making. Below, the chart displays the trading history with the $385.00 strike price marked in red:

The $385.00 strike represents a 1% premium to the current stock price, which indicates it is also out-of-the-money by that same percentage. Consequently, there is a possibility that this covered call could also expire worthless, allowing the investor to retain both their shares and the premium. Current data indicates a 50% likelihood of this occurring. Our platform will track these odds over time, generating detailed charts of the options’ historical performance.

Should the covered call expire worthless, the premium collected would provide an additional return of 3.59%, or an annualized 30.48%, recognized as the YieldBoost.

Volatility Considerations

The implied volatility for both the put and call contracts stands at approximately 30%. In comparison, our calculations reveal that the actual trailing twelve-month volatility—based on the last 250 trading days and including today’s price of $382.91—is at 25%.

For additional insights into put and call options related to Microsoft and other stocks, visit StockOptionsChannel.com.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of any affiliated entities.