Goldman Sachs Group Inc (NYSE: GS) commenced trading new options on March 2027 contracts today. Notably, a put option at a $795.00 strike price has a current bid of $94.00, enabling investors to lower their cost basis for shares to approximately $701.00, compared to the current trading price of $803.10. This represents a potential 1% discount, with a 61% chance of the contract expiring worthless, offering an 11.82% return on cash commitment.
Additionally, a call option at a $820.00 strike price is available with a current bid of $104.00. Investors selling covered calls at this price could yield a total return of 15.05%, contingent on shares being called away at expiration. This call option represents a roughly 2% premium to the current share price, with a 45% probability of expiring worthless, resulting in a potential 12.95% additional return if the contract lapses.
Both options exhibit an implied volatility of about 35%. The actual trailing twelve-month volatility is calculated to be 32%.
