Investors in Microsoft Corporation (MSFT) can now access new options contracts expiring on April 13th. A notable put contract at the $355 strike price has a current bid of $4.85, allowing investors to potentially enter at a cost basis of $350.15, approximately 2% below the current trading price of $360.85 per share. The odds of this contract expiring worthless are estimated at 61%, which could yield a 1.37% return on cash commitment if it does.
On the call side, a $370 strike price contract is currently bidding at $3.50. If investors sell-to-open this contract while purchasing MSFT shares at $360.85, they would commit to selling at $370, which could offer a total return of 3.51% if exercised. The likelihood of the call contract expiring worthless stands at 65%, potentially resulting in a 0.97% additional return for the investor. The implied volatilities for the put and call contracts are 32% and 30%, respectively.
