Investors in the iShares Bitcoin Trust ETF (Symbol: IBIT) gained access to new options, specifically for a March 9 expiration, on the product today. A notable put contract is available at a $37.00 strike price, currently bid at $1.41. If an investor sells-to-open this contract, they are committing to buy shares at $37.00, effectively lowering their cost basis to $35.59, compared to the current share price of $37.30. This offers an approximate 1% discount, with a 56% chance of the contract expiring worthless.
On the call side, an option at a $38.00 strike price has a bid of $1.26. If an investor buys shares at $37.30 and sells this call as a covered call, they face potential returns of 5.25% if shares are called away at the March 9 expiration. The $38.00 strike represents a 2% premium over the current price, with a 54% chance of the contract expiring worthless. Should it do so, the premium would yield a 3.38% additional return, or 88.33% annualized.
The implied volatility for the put contract stands at 56%, while the call’s is at 53%. The actual trailing twelve-month volatility for IBIT is calculated at 46%.
