Investors in Wix.com Ltd. (NASDAQ: WIX) saw new options contracts begin trading on October 9, 2023, with expirations set for June 2028. Notably, a put option at the $82.50 strike price has a current bid of $22.00, offering a potential cost basis of $60.50 for investors looking to acquire shares, as the current stock price is $87.37. This put option is priced approximately 6% below the current price and has a 74% chance of expiring worthless, indicating a possible 26.67% return on cash commitment if it does.
On the call side, a $105.00 strike price call option has a bid of $25.00. If exercised, it could yield a total return of 48.79% based on the current stock level, which is a 20% premium above today’s trading price. The likelihood of this call option expiring worthless stands at 35%, allowing investors to retain both shares and premium income for a potential extra return of 28.61%.
The implied volatility for the put option is 69%, while that for the call is 64%. The actual twelve-month trailing volatility is calculated at 58%.
