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Standard and Poors Global Inc (SPGI) launched new options today, with expiration set for January 2028. Investors can consider a put contract at a $480.00 strike price, currently bidding at $46.00, which implies a commitment to purchase shares at that price. This could lower the effective cost basis to $434.00 per share, providing a 9.58% return on cash commitment if it expires worthless, equating to a 4.46% annualized return.
On the call side, a $560.00 strike price contract is available, currently bidding at $54.00. Should an investor sell-to-open this covered call while holding shares purchased at $498.97, they could see a total return of 23.05% if the stock gets called away. The probability of the covered call expiring worthless stands at 49%, potentially offering a 10.82% boost in returns, or 5.04% annualized.
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