Investors in Best Buy Inc (NYSE: BBY) can now access new options expiring on October 16, 2023. A notable opportunity includes a put contract at an $80 strike price, currently bid at $5.20. Selling this contract can lower an investor’s effective cost basis to $74.80 per share, which is approximately 7% below the current trading price of $80.71. Current analytical data indicates a 57% probability that this put contract will expire worthless.
On the call side, a contract at the $85 strike price is bid at $3.90. Selling this covered call would yield a total return of about 10.15% if the stock is called away, excluding dividends. This contract has similar odds of expiring worthless at 57%, presenting a potential additional return of approximately 4.83% or 18.76% annualized should it expire without execution. Both put and call options reflect an implied volatility of about 39%.
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