New Duolingo Options Available for June 2026 Expiration
Investors Explore New Opportunities
Today, investors in Duolingo Inc (Symbol: DUOL) gained access to new options set to expire in June 2026. With 381 days until expiration, these contracts may allow sellers of puts or calls to command a higher premium compared to those with a nearer expiration.
Highlights of the New Contracts
The identified put contract at a $490.00 strike price has a current bid of $97.00. Selling to open this put commits the seller to purchase shares at $490.00 while collecting the premium, lowering the effective cost basis to $393.00. For investors eyeing DUOL shares, this represents a potentially favorable alternative to the current price of $517.16 per share.
The $490.00 strike reflects about a 5% discount from the current trading price, indicating a possibility that the put may expire worthless. Current analytics suggest a 68% chance of this occurring. Should the contract expire worthless, the premium would yield a return of 19.80% on the cash commitment, or 18.96% annualized, referred to as the YieldBoost.
Call Option Analysis
On the calls side, the contract at the $580.00 strike price has a current bid of $107.00. Purchasing shares at $517.16 and selling this call as a covered call commits an investor to sell at $580.00. Collecting the premium could yield a total return of 32.84% at expiration, excluding commissions. However, significant upside may remain if DUOL shares appreciate significantly.
The $580.00 strike represents a 12% premium over the current trading price. This indicates the potential for the contract to expire worthless, allowing the investor to retain both shares and the premium collected. The odds of this are currently estimated at 43%. If the covered call expires worthless, the premium would offer an additional return of 20.69%, or 19.82% annualized, another YieldBoost.
Volatility and Market Context
Implied volatility is 61% for the put contract and 60% for the call contract. The actual trailing twelve-month volatility, based on the last 249 trading days, is calculated at 57%. For additional options analyses, visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
