Verisign Inc (Symbol: VRSN) has launched new options trading for the October 17th expiration, featuring a notable put contract at a $280.00 strike with a current bid of $10.60. An investor selling this put would agree to buy the stock at $280.00, effectively reducing the cost basis to $269.40, a potential 4.8% discount from the current price of $282.72. The implied probability of this contract expiring worthless is 58%, offering a YieldBoost of 3.79%, or 14.70% annualized, should it expire without exercise.
On the call side, a contract at the $290.00 strike price has a current bid of $10.10, which would yield a total return of 6.15% if executed at expiration. This call contract is approximately 3% above the current stock price, with a 53% chance of expiring worthless, allowing the investor to retain both shares and premium, equating to a YieldBoost of 3.57%, or 13.87% annualized.
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