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Investors in the iShares Core Universal USD Bond ETF (IUSB) can now access new options for January 2026, including a notable call contract at the $47.00 strike price. This contract has a current bid of 15 cents, and if an investor purchases IUSB shares at $46.61 and sells the call, they would be committed to selling at $47.00, potentially achieving a total return of 1.16% by expiration, excluding dividends.
The $47.00 strike is approximately 1% above the current trading price, with a 66% possibility that the call contract could expire worthless, allowing the investor to retain both the shares and the premium collected. If this occurs, it could represent a 0.32% additional return for the investor, or an annualized 2.61% YieldBoost. The implied volatility for the call contract sits at 6%, while the actual trailing twelve-month volatility is 5%.
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