Investors in the iShares Bitcoin Trust ETF (IBIT) saw new options begin trading on October 9, 2023, with contracts expiring on April 20, 2024. Notably, a put contract at the $39.00 strike price has a current bid of $1.27, allowing investors to purchase shares at a cost basis of $37.73 if they sell-to-open the contract. This represents a 1% discount to the current trading price of $39.34 per share, with a 55% probability that the contract may expire worthless.
On the call side, a contract at the $40.00 strike price is bidding at $1.10. If shares are purchased at $39.34 and the call is sold-to-open, investors may achieve a total return of 4.47% at expiration. This strike price is about 2% above the current trading level, suggesting a 56% chance that the contract could also expire worthless.
Implied volatility is 47% for the put contract and 46% for the call contract, while trailing twelve-month volatility is calculated at 45%. These options provide varied strategic opportunities for investors amid current market conditions.
