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Investors in Progress Software Corp (Symbol: PRGS) can now explore new options expiring on August 15th. Notable contracts include a put at a $62.50 strike price, with a current bid of $2.10, allowing an investor to effectively purchase the stock at a cost basis of $60.40 per share, compared to the current price of $62.92. This put option represents a 1% discount to the current trading price, with a 56% chance of expiring worthless, yielding a potential 3.36% return on the cash commitment.
On the call side, a $70.00 strike price call offers a bid of 85 cents. If an investor buys PRGS shares at $62.92 and sells this call as a covered call, there’s a possible total return of 12.60% if the stock is called away by expiration, equating to a likelihood of 74% for expiring worthless. The call option represents an 11% premium over the current trading price.
Current implied volatilities for the put and call options are 40% and 37%, respectively, while the actual trailing twelve-month volatility is calculated at 32%.
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