Investors in Amazon.com Inc (AMZN) can now access new options expiring in July 2027, offering a notable opportunity due to a lengthy time value of 553 days. A highlighted call contract at a $360 strike price currently bids at $13, allowing for a potential total return of 52.28% if shares are sold at that price when the option expires, based on the current share price of $244.94.
The $360 strike price is approximately 47% above the current trading price, with a 68% probability that the covered call contract will expire worthless. If this occurs, investors would retain their shares along with the premium collected, which translates to a 5.31% increase in returns or 3.50% annualized. The implied volatility for this option is 39%, compared to a trailing twelve-month volatility of 34%.
