Investors in Alphabet Inc. (GOOGL) began trading new options on August 17, with key contracts drawing interest. A put contract at a $365.00 strike price has a bid of $5.10, offering a cost basis of $359.90 per share if sold to open, reflecting a 1% discount from the current price of $369.33. Analysts estimate a 60% chance the contract may expire worthless, potentially yielding a 1.40% return on cash commitment, or 36.43% annualized.
On the calls side, a $375.00 strike call contract is priced at $7.45. If an investor buys shares at the current price and sells the call, they could earn a total return of 3.55% if the stock is called away. There is a 56% probability this contract may also expire worthless, allowing investors to retain both shares and premium, equating to a potential 2.02% extra return, or 52.59% annualized. The implied volatility for the put is 33%, while the call shows 36%.
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