Investors in Seagate Technology Holdings PLC (Symbol: STX) are witnessing new options trading for February 2026 expiration, including a put contract at the $275.00 strike price with a current bid of $21.80. This strategy would allow investors who sell-to-open the put contract to buy shares at $275.00, effectively lowering their cost basis to $253.20, compared to the current share price of $277.38.
The put contract carries a 56% chance of expiring worthless, offering a potential return of 7.93%, or 65.76% annualized, if successful. Meanwhile, a call contract at the $280.00 strike price is available with a bid of $23.60, allowing investors to collect a total return of 9.45% if exercised at expiration. The odds of this covered call expiring worthless are 47%, presenting the possibility of retaining both shares and the premium collected, which translates to an 8.51% additional return or 70.58% annualized.
Implied volatility for the put and call contracts is at 66% and 68%, respectively, while actual trailing twelve-month volatility stands at 53%.
