Meta Platforms Inc (NASDAQ: META) introduced new options today for expiration on August 8th. A notable put contract at the $715.00 strike price has a current bid of $33.00, which, if sold to open, commits investors to buy shares at that price, essentially lowering their cost basis to approximately $682.00 (before commissions). This represents a about a 1% discount to the stock’s current trading price of $720.99.
On the call side, a contract at the $730.00 strike price is available with a bid of $31.05. If investors buy shares at $720.99 and sell this call as a covered call, they stand to gain a total return of 5.56% if the stock is called away at expiration, excluding dividends. The odds for both the put and call contracts expiring worthless are 55% and 51%, respectively.
The implied volatility for the put contract is 39%, while the call contract has an implied volatility of 37%. Today’s actual trailing twelve-month volatility for META, calculated over the last 250 trading days, stands at 37%.
