Investors in the iShares Expanded Tech-Software Sector ETF (IGV) have new options available for expiration on October 16, 2023, offering a potential opportunity for higher premiums due to the 86 days until expiration. Specifically, a put contract at the $89.00 strike price has a current bid of $3.20, which would effectively reduce the cost basis of acquiring shares to $85.80 if executed. This represents a 1% discount to the current trading price of $90.17/share.
On the call side, a contract at the $92.00 strike price, with a current bid of $4.90, allows investors to potentially earn a total return of 7.46% if called away at expiration. This strike price is approximately 2% above the current trading price. Current odds for the put expiring worthless stand at 59%, while the call has a 49% chance of expiring worthless, indicating varying risk profiles for these positions.
Implied volatility for the put is 35% and for the call, 38%, while the trailing twelve-month actual volatility is calculated at 29%. Investors looking for alternative strategies may find these options valuable.
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