Investors in Check Point Software Technologies, Ltd. (Symbol: CHKP) observed new options trading today, specifically for the January 2027 expiration. A put contract at the $130.00 strike price has a current bid of $11.90, allowing investors to potentially buy shares at an effective cost basis of $118.10, a 14.26% discount from today’s share price of $137.66. The odds of this put contract expiring worthless, thus allowing investors to keep the premium, are currently estimated at 66%.
On the call side, a contract at the $145.00 strike price is priced at $16.30. If investors purchase shares at the current price and sell this call as a “covered call,” they could achieve a total return of 17.17% if the stock is called away upon expiration. The probability of this contract also expiring worthless is estimated at 45%, allowing investors to keep both their shares and the premium collected.
Implied volatility for the put contract stands at 42%, while the call’s is at 41%. In contrast, the actual trailing twelve-month volatility is calculated at 32%, based on the last 250 trading days’ closing values.
