Investors in the iShares Expanded Tech-Software Sector ETF (IGV) can now explore new options expiring on July 17th. Notably, a put contract at the $87.00 strike price has a current bid of $4.30, allowing investors to purchase the stock at an effective cost basis of $82.70 if sold. This represents a potential opportunity, particularly as this strike price is approximately 1% lower than the current trading price of $87.82 per share.
On the call side, a $100.00 strike call contract is available with a bid of $1.35. If an investor sells to open this covered call after purchasing shares at $87.82, they could achieve a total return of 15.41% if the shares get called away by expiration. The likelihood of the put contract expiring worthless is estimated at 57%, while the call contract has a 78% chance of doing the same.
The implied volatility for the put contract stands at 35%, and for the call at 34%, compared to the actual trailing twelve-month volatility of 26%. These new options provide distinct opportunities for traders assessing the evolving conditions of the tech sector.
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