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Investors in Ondas Holdings Inc (NASDAQ: ONDS) saw new options trading commence on November 7th, with significant interest in a put contract at the $6.00 strike price, currently bidding at 50 cents. Selling this contract allows investors to commit to purchasing shares at $6.00, effectively lowering their cost basis to $5.50, representing a 21% discount from the current trading price of $7.63. The probability of this contract expiring worthless is estimated at 75%, potentially offering an 8.33% return on cash commitment or 70.67% annualized.
Additionally, a call contract at the $11.50 strike price is available, with a current bid of 5 cents. Selling this as a “covered call” would allow investors to commit to selling shares at $11.50, yielding a total return of 51.38% if the stock is called away by the expiration date. The chance of this contract expiring worthless is estimated at 56%, providing a 0.66% return boost or 5.56% annualized if it does.
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