Investors in the Global X Nasdaq 100 Covered Call ETF (QYLD) saw new options begin trading this week, specifically for the August 21st expiration. A put contract at the $10.00 strike price currently bids at 35 cents, allowing investors to potentially lower their cost basis to $9.65 per share, significantly below the current market price of $17.62. This represents an approximate 43% discount, with analysts estimating a 91% chance the put will expire worthless, yielding a 3.50% return on cash commitment (7.52% annualized).
On the call side, a contract at the $18.00 strike price is bidding at 15 cents, offering a potential return of 3.01% if the stock is called away at expiration. This strike price is about 2% above the current trading price, carrying a 61% likelihood of expiring worthless. The volatility levels stand at 87% for the put and 25% for the call, while the actual trailing 12-month volatility is 17%.
