Investors in International Business Machines Corp (IBM) can now trade new options expiring in June 2028. Notably, the put contract at the $210 strike price is currently priced at $36.50, allowing investors to commit to buying shares at $210, effectively lowering their cost basis to $173.50. This represents a potential 2% discount to IBM’s current market price of $213.86. The odds of this contract expiring worthless are estimated at 65%.
On the call options side, the $230 strike price call contract is bid at $38.30. If an investor purchases shares at $213.86 and sells this covered call, they could see a total return of 25.46% if the option is exercised. However, there’s a 47% chance the call could expire worthless, allowing the investor to retain both shares and premium income. The implied volatilities for the put and call contracts are 37% and 39%, respectively, while the actual trailing twelve-month volatility is computed to be 34%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
