Investors in Amazon.com Inc (AMZN) can now trade new options with a December 2028 expiration, providing a 1087-day timeframe that may yield higher premiums for put or call contracts compared to shorter-term options. The notable put contract has a strike price of $230, currently bid at $41, allowing investors to establish a purchase cost basis of $189 per share if executed. This entry point offers approximately a 1% discount from the current trading price of $232.11 and carries a 69% chance of expiring worthless.
On the calls side, a contract at a $300 strike price is bid at $41.50. If an investor sells this as a covered call after buying shares at $232.11, it may yield a total return of 47.13% if the stock is called away by expiration. The $300 strike price represents a 29% premium above the current trading level, with a 48% chance of expiring worthless, allowing the investor to retain both shares and premium earned.
