Investors in Alphabet Inc. (GOOGL) began trading new options contracts today, set to expire on February 9, 2024. Key contracts of interest include a put option with a $330 strike price, currently bidding at $10.30, and a call option with a $335 strike price, bidding at $9.80. The current stock price stands at $331.78.
If the put option is sold, investors would effectively purchase shares at a cost basis of $319.70, representing a potential 3.12% return if the option expires worthless, reflecting an 81.37% annualized yield boost. On the call side, selling the covered call at $335 could yield a total return of 3.92% if the option is exercised, with a 53% chance that it may expire worthless. The implied volatilities for the put and call options are 43% and 45%, respectively.
