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Investors in Datadog Inc (NASDAQ: DDOG) began trading new options today, expiring on November 14th. Notably, a put contract at the $149.00 strike price has a current bid of $8.40, requiring investors to potentially buy the stock at that price, leading to a cost basis of $140.60 if sold-to-open. This represents a 2% discount from the current trading price of $152.21 per share.
On the call options side, a $155.00 strike price has a current bid of $9.70, allowing for an 8.21% total return (excluding dividends) if the stock is called away at expiration. There is a 49% chance this call will expire worthless, allowing investors to keep their shares and the premium collected. The implied volatility for the put is 52%, and for the call, it is 53%, in contrast to the actual trailing twelve month volatility of 44%.
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