Investors in the Vanguard Information Technology ETF (VGT) can now trade new options expiring in September 2027, offering significant time value due to 462 days until expiration. Notably, a put contract at the $116.00 strike price has a current bid of $12.80, allowing sellers to potentially lower their effective share purchase price to $103.20. The likelihood of this put expiring worthless is estimated at 63%.
On the call side, a $120.00 strike price call contract is available with a bid of $15.50, offering a potential total return of 16.11% if the stock is called away at expiration. This call option represents a 3% premium over the current trading price of $116.70, with a 42% chance of expiring worthless, allowing the investor to keep both the shares and the premium.
Implied volatility for the put contract is 34%, while the call contract sits at 33%. The actual trailing twelve-month volatility is calculated at 22%, based on recent trading performance.
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