Diving into Ionq Inc Options Chain

Investors in Ionq Inc (Symbol: IONQ) witnessed the launch of new options available for trading today, reaching expiration on April 12th. At Stock Options Channel, our experts have meticulously combed through the IONQ options chain, identifying a noteworthy put and call contract that could pique investor interest.

The Advantage of Put Contracts

One intriguing option is the put contract at the $10.00 strike price. With a current bid of 74 cents, selling-to-open this put contract entails committing to buy the stock at $10.00, while pocketing the premium. This action would effectively set the cost basis of the shares at $9.26 (excluding broker commissions), offering a viable alternative for potential investors eyeing IONQ shares.

Delving into the Numbers

The $10.00 strike presents approximately a 5% discount from the stock’s current trading price, positioning it ‘out-of-the-money.’ There exists a 99% chance, according to current analytical data, that the put contract may expire without worth. Stock Options Channel diligently monitors these probabilities, intending to update investors via our website. If the contract matures fruitlessly, the premium equates to a 7.40% return on the cash outlay, or a significant annualized return of 62.87%, aptly labeled the ‘YieldBoost.’

Visualizing the Historic Trajectory

Displayed below is a chart delineating the twelve-month trading pattern for Ionq Inc, highlighting the position of the $10.00 strike concerning historical data.

The Call Contract Perspective

Switching focus to the call side of the option chain, the call contract at the $11.50 strike is stirring interest with a 50-cent bid. By assuming a ‘covered call’ strategy after purchasing IONQ shares at the current price of $10.55/share, the investor commits to selling the stock at $11.50. This approach could yield a robust total return of 13.74% (excluding dividends) if the shares are called away upon the April 12th expiration, factoring in broker commissions.

Evaluating Upside Potential

Considering the call contract in relation to the $11.50 strike highlights an approximate 9% premium over the current trading price, marking it ‘out-of-the-money.’ With a 99% likelihood, as indicated by current analytical data, that the covered call contract might end worthless, investors could retain both shares and the premium garnered. Stock Options Channel diligently tracks these evolving odds, presenting the information to investors through our platform. In the event of an idle expiration, the premium affords a noteworthy 4.74% boost in return, equivalent to a solid annualized rate of 40.27%, acknowledged as the ‘YieldBoost.’

Understanding Market Volatility

While the market’s actual trailing twelve-month volatility weighs in at 88%, there is a multitude of put and call options contract insights awaiting discovery at StockOptionsChannel.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.