Investors in Advanced Micro Devices Inc (AMD) can now trade new options set to expire on July 22. Notably, a put contract at a $505.00 strike price has a bid of $25.60, allowing investors to potentially purchase shares at a cost basis of $479.40. This represents about a 1% discount to the current trading price of $508.54. The odds of this put option expiring worthless are 55%, which could yield a 5.07% return on cash commitment.
On the call side, a $520.00 strike price contract is available with a current bid of $27.00. Purchasing shares at the current price and selling this call would result in a total return of approximately 7.56% if the option is executed at expiration. The likelihood of this call contract expiring worthless is estimated at 51%, potentially leading to a 5.31% yield boost for investors. The implied volatility for the put contract is at 77%, while the call contract sits at 81%.
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