Investors in Okta Inc (OKTA) began trading new options with an expiration date of April 10th. Notably, the put contract at a $74 strike price has a current bid of $3.85, allowing investors to potentially purchase shares at a lower effective cost of $70.15. This represents about a 2% discount from the current trading price of $75.53 per share.
On the call side, the $76 strike price has a bid of $4.40. If shares of OKTA are bought at the current price and the call is sold as a covered call, the total return could reach 6.45% if exercised, even as the possibility of the call expiring worthless stands at approximately 46%. The implied volatility for the put is 63%, while the call has an implied volatility of 62%.
