Investors in Teradyne, Inc. (TER) saw new options trading begin on September 18, 2023, with a focus on 137 days until expiration. Notably, a put contract at a $340 strike price has a current bid of $50.20. If an investor sells this put contract, they would commit to buying shares at $340, effectively reducing their cost basis to $289.80, offering a 2% discount compared to the current trading price of $346.39.
Additionally, a call contract at a $360 strike price has a bid of $53.30. An investor purchasing shares at $346.39 and selling this covered call could achieve a total return of 19.32% if the stock is called away at expiration. The strike price represents an approximate 4% premium to the current share price, with a 44% probability of the contract expiring worthless.
Implied volatilities for the put and call contracts are 69% and 70%, respectively, while the actual trailing twelve-month volatility stands at 62%. For more contract insights and trading history, visit StockOptionsChannel.com.
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