Investors in Fox Corp (NASDAQ: FOXA) gained access to new options contracts with a December 2028 expiration date today. The put contract at a $65.00 strike price currently has a bid of $9.40, which allows sellers to commit to purchasing shares at an effective price of $55.60, a 4% discount to the current trading price of $67.58. Current odds suggest a 68% chance that the put contract will expire worthless, potentially yielding a 14.46% return on cash commitment or an annualized return of 6.31%.
Additionally, a call contract at the $75.00 strike price is available for a bid of $12.00. Investors who engage in a covered call strategy could achieve an approximate total return of 28.74% if the shares are called away at expiration. However, the contract has a 43% chance of expiring worthless, allowing investors to keep both their shares and the premium, translating to a potential 17.76% boost to returns or 7.74% annualized.
Implied volatility for the put contract is 38%, while the call contract has an implied volatility of 37%. The actual trailing twelve-month volatility is calculated at 36%, based on the last 250 trading days.
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