Investors in STMicroelectronics NV (NYSE: STM) can now explore new options expiring on August 14. Notably, a put contract at a $72.00 strike price is available with a current bid of $5.60. This allows investors to potentially buy shares at an effective cost basis of $66.40, representing a 1% discount to the current trading price of $72.75. The odds of this put contract expiring worthless are currently estimated at 58%, offering a possible 7.78% return on cash committed, or 66.02% annualized.
On the call side, there is a $74.00 strike price contract with a current bid of $5.90. If an investor buys shares at $72.75 and sells this covered call, they could see a total return of 9.83% if exercised, excluding dividends. The chance of this contract expiring worthless is estimated at 46%, which could still provide an 8.11% boost in returns, or 68.84% annualized. Implied volatilities for the put and call contracts are 83% and 82%, respectively, while the trailing twelve-month volatility is calculated at 56%.
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