Goldman Sachs Group Inc (GS) has introduced new options with a March 2028 expiration date, allowing for potentially higher premiums due to a 717-day time value. The notable put contract at an $815.00 strike price has a current bid of $137.00, enabling investors to effectively lower their cost basis to $678.00 per share, compared to the current market price of $822.30. This option has a 65% chance of expiring worthless, which could yield a 16.81% return on cash commitment.
On the call side, a contract at the $830.00 strike price, with a bid of $161.00, allows investors to commit to selling GS shares at this price. If shares are called away, the total return would approximate 20.52%, contingent upon the stock price at expiration. This call has a 41% chance of expiring worthless, resulting in a potential 19.58% additional return or 9.97% annualized.
Implied volatility for the put contract is 37%, while the call’s is 36%. The trailing twelve-month volatility for GS stands at 32%, based on the last 251 trading days.
