Investors in Cboe Global Markets Inc (CBOE) can now explore new options with a December 18, 2023, expiration date. Key highlights include a put contract at a $290.00 strike price, which currently has a bid of $18.60. Selling this contract could provide an effective purchase price of $271.40 per share, representing a 3% discount compared to the current trading price of $299.67. The odds of this put expiring worthless are approximately 65%, potentially yielding a 6.41% return on the cash commitment.
Additionally, a call contract at a $320.00 strike price is available with a bid of $20.00. Investors purchasing shares at $299.67 and selling this covered call could see a total return of 13.46% if the stock is called away. The likelihood of this call expiring worthless stands at about 52%, which would allow investors to retain both their shares and the premium, resulting in a 6.67% yield boost. The implied volatility for the put is 28%, while the call’s implied volatility is 25%.
