Investors in GitLab Inc (Symbol: GTLB) began trading new options today, set to expire in September 2027. This includes a put option at a $15.00 strike price with a current bid of $2.00, allowing investors to purchase shares at an effective cost basis of $13.00, significantly lower than the current market price of $26.82. This put represents a 44% discount and has an 87% probability of expiring worthless, equating to a potential 13.33% return on cash commitment.
Additionally, a call option is available at a $32.50 strike price, priced at $4.50. If GTLB shares are acquired at $26.82 and the call is exercised at expiration, investors could see a total return of approximately 37.96%. This call has a 42% chance of expiring worthless, offering a possible 16.78% yield boost if it does not get exercised. The implied volatilities for the put and call options are 89% and 61%, respectively, while the trailing twelve-month volatility stands at 59%.
