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Investors in Datadog Inc (Symbol: DDOG) saw new options trading begin on October 10, 2023, for the February 2026 expiration. One notable contract is the $155.00 put option, which has a current bid of $13.40. If sold, this would result in a cost basis of $141.60 per share, compared to the current price of $157.83, offering an approximate 2% discount. Analysts suggest a 60% chance the put will expire worthless, yielding a potential 8.65% return on cash commitment, or 29.49%
On the call side, the $160.00 strike option has a current bid of $15.05. If investors purchase shares at the current price of $157.83 and sell the call option, the total return could reach 10.91% if called away at expiration. There’s a 45% chance this call could also expire worthless, offering an additional 9.54% return, or 32.53% annualized. The implied volatility for the put contract stands at 50%, while it is at 49% for the call contract. The actual trailing twelve-month volatility is calculated at 44%.
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