Investors in the ProShares Bitcoin ETF (Symbol: BITO) saw new options trading begin today, with contracts expiring on December 31, 2024. The key $12.00 strike put contract currently has a bid of 38 cents, allowing sellers to potentially capture a higher premium due to the lengthy time until expiration—363 days. This put contract could enable investors interested in buying BITO shares to lower their effective purchase price to $11.62, compared to the current trading price of $12.38.
The $12.00 strike price represents an approximate 3% discount to the current market price and carries an estimated 1% chance of expiring worthless. If it does expire worthless, the premium would yield a 3.17% return on the cash commitment, equating to an annualized return of 3.18%. The trailing twelve-month volatility for BITO, based on the last 250 trading days, is calculated to be 45%.
