Investors in Broadcom Inc (NASDAQ: AVGO) saw new options trading for the April 13 expiration begin today. A notable put contract at the $295.00 strike price has a current bid of $9.10, allowing investors to potentially buy shares at an effective cost basis of $285.90. This strike price represents a 1% discount to the current trading price of $297.33 per share, with a 55% probability that the put contract could expire worthless.
On the calls side, a contract at the $300.00 strike price, with a bid of $8.90, allows investors to sell shares currently priced at $297.33 for an effective return of 3.89% if executed by the April expiration. The current odds of this call contract expiring worthless are at 52%. Implied volatility for the put option stands at 48%, while the call has an implied volatility of 49%.
