Galaxy Digital Options Trading: Key Strikes Revealed

Investors in Galaxy Digital Inc (Symbol: GLXY) began trading new options today for the July 11th expiration. Notably, one put and one call contract have garnered particular interest according to the YieldBoost formula.

Details on Put Contract

The put contract with a $20.00 strike price currently bids at $2.05. If an investor sells-to-open this put, they would commit to buying shares at $20.00 while earning the premium. This effectively reduces the cost basis to $17.95 (excluding broker commissions). For those looking to purchase GLXY shares, this represents an appealing alternative to the current market price of $20.12/share.

The $20.00 strike is about 1% lower than the current trading price, putting it slightly out-of-the-money. Current analytics suggest a 57% chance that the put contract could expire worthless. Stock Options Channel will monitor these odds, providing updates on their website. If the contract expires worthless, the premium yields a 10.25% return on cash commitment, equating to an annualized return of 87.01%—termed YieldBoost.

Call Contract Insights

On the calls side, a $21.00 strike call contract is bidding at $2.25. Purchasing GLXY shares at the current price of $20.12 and selling-to-open this call would mean committing to sell at $21.00. This strategy, plus the premium collected, would deliver a 15.56% total return if the stock is called away by July 11th (excluding dividends and broker commissions). However, significant upside potential could remain if GLXY shares rise sharply, necessitating a careful review of both historical trading patterns and business fundamentals.

The $21.00 strike is approximately 4% above the current trading price, indicating that there’s a possibility the covered call could also expire worthless. Data indicates a 47% chance of this occurrence. If the contract expires worthless, investors would retain both their shares and the premium collected, leading to an effective extra return boost of 11.18% or 94.92% annualized, also classified as YieldBoost.

Volatility Considerations

The implied volatility for the put contract stands at 100%, while the call contract shows 115% implied volatility. Analyzing the last 250 trading days, the actual trailing twelve-month volatility is calculated at 89%. For more actionable options ideas, visit StockOptionsChannel.com.

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The views expressed are those of the author and may not reflect those of Nasdaq, Inc.