Micron Technology Inc. (Symbol: MU) has introduced new options trading with July 29th expiration dates today. A notable put contract at the $950 strike price has a current bid of $66.00, allowing investors who sell-to-open to buy the stock at that price, effectively lowering their cost basis to $884.00 compared to the current trading price of $957.00. This put option has a 57% chance of expiring worthless.
On the calls side, a contract at the $965 strike price currently bids at $68.80, offering an 8.03% total return upon exercising if the stock closes at that price by the expiration date. The estimated odds of this call contract expiring worthless are at 47%. Both contracts reflect high implied volatility, with put options at 99% and calls at 96%.
Investors can utilize these options strategies to enhance returns, with potential annualized yields of 169.05% for put contracts and 174.94% for covered calls if held until expiration.
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