Investors in the iShares U.S. Energy ETF (IYE) can now trade new options contracts set to expire on May 15. A put contract at the $62.00 strike price currently has a bid of $0.50, implying a potential cost basis of $61.50 for investors willing to purchase the stock at a discount to its current trading price of $62.41. The odds of this put contract expiring worthless are estimated at 56%.
Additionally, a call contract at the $64.00 strike price bids at $0.20. If exercised, this covered call could yield a total return of 2.87%, assuming shares are called away at expiration. The likelihood of this call contract expiring worthless is assessed at 54%. This data indicates the trading dynamics and potential returns for investors using these options strategies in the current market landscape.
