Investors in Silicon Motion Technology Corp (NASDAQ: SIMO) have access to new options for January 2028, marking a potential opportunity for higher premiums due to the 522 days until expiration. A notable put contract with a $260.00 strike price has a current bid of $93.00, which could lead to an effective purchase price of $167.00 per share, a 39% discount from the current trading price of $272.81. There is a 74% chance the put will expire worthless.
On the calls side, a $310.00 call contract bids at $103.00. If investors buy SIMO shares at current levels and sell this call, they could see a total return of 51.39% by expiration, assuming the stock is called away. This strike price represents a 14% premium to the current market price, with a 32% chance of expiration worthless.
Both contracts have high implied volatilities—93% for the put and 94% for the call—and reflect differing strategies for investors interested in SIMO. Current trading volatility is calculated at 77%.
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