Investors in Duolingo Inc (NASDAQ: DUOL) can now explore new options expiring on April 24. A put contract with a $75 strike price has a current bid of $1.45, allowing an investor to commit to purchasing shares at this price while effectively lowering their cost basis to $73.55. This represents a 25% discount from the current trading price of $99.70, with an 86% likelihood that the put contract could expire worthless.
Additionally, a call contract with a $115 strike price is available at a bid of $5.50. If purchased alongside shares of DUOL at $99.70, it could yield a total return of 20.86% if exercised, although there is a 62% chance it may expire worthless. The implied volatility for the put is at 90%, while the call’s implied volatility is 74%. Actual trailing twelve-month volatility stands at 69%.
